Results 211 to 220 of about 5,173 (248)
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Trade-off Theory vs Pecking Order Theory Revisited
Journal of Emerging Market Finance, 2012This article empirically tests the two competing theories of capital structure: Trade-off theory against Pecking Order theory using the time series hypothesis. This study is performed for an emerging market context taking the case of Indian firms with a sample from 10 industries for the period 1990 to 2007. Our results support the evidence of trade-off
Priyanka Singh, Brajesh Kumar
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The dynamic specification of the modified pecking order theory: Its relevance to Italy [PDF]
Empirical Economics, 2002 This paper proposes an empirical model for the modified pecking order theory (MPO) in which both trade-off (TO) and pecking order (PO) models are nested. The MPO model is specified as an error-correction mechanism and applied to a vast panel data-set. Unlike previously estimated financial models, it avoids a number of problems: the mis-specification of
Maria Elena Bontempi
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Firm Maturity and the Pecking Order Theory
SSRN Electronic Journal, 2010We identify firms according to two life cycle stages, namely growth and maturity, and test the pecking order theory of financing. We find a strong maturity effect, i.e., the pecking order theory describes the financing behavior of mature firms better than growth firms. Our findings show that firm maturity is an alternative proxy for debt capacity.
Laarni Bulan, Zhipeng Yan
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Pecking order as a dynamic leverage theory
The European Journal of Finance, 1998Static tradeoff theories, which do not explicitly treat the impact of transaction costs, do not explain the policy of asymmetry between frequent small debt transactions and infrequent large equity transactions. Nor do these theories explain why the debt ratio is allowed to wander a considerable distance from its alleged static optimum, or how much of a
C. N. Bagley, D. K. Ghosh, U. Yaari
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Do ultimate owners follow the pecking order theory?
The Quarterly Review of Economics and Finance, 2017Previous studies that have tested the pecking order theory have been inconclusive. In this paper, we use unique survey results for private Brazilian firms in order to investigate firms’ choice of capital structure. We document that ultimate owners of privately owned firms follow the pecking order theory, even in presence of subsidized loans.
Rodrigo Zeidan +2 more
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Pecking Order Theory and Innovativeness of Companies
2016The purpose of this paper is to explore whether the “pecking order hypothesis” applies to the capital finance preferences of innovative companies. The research is based on a survey of 409 companies. We asked them about attitude towards innovation—three answers were possible (neutral, innovation “on occasion” and pro-innovative attitude) and to indicate
Katarzyna Prędkiewicz +1 more
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Trade-Off and Pecking Order Theories of Debt
SSRN Electronic Journal, 2007Taxes, bankruptcy costs, transactions costs, adverse selection, and agency conflicts have all been advocated as major explanations for the corporate use of debt financing. These ideas have often been synthesized into the trade-off theory and the pecking order theory of leverage. These theories and the related evidence are reviewed in this survey.
Goyal, Vidhan K. FINA, Frank, Murray
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An Analysis of Pecking Order Theory With the Analytic Hierarchy Process
International Journal of Applied Management Sciences and Engineering, 2022According to pecking order theory (POT), when a company feels the need for capital, it applies the hierarchies of accounts payable and accruals, retained earnings, debt, and new common stock. Similarly, the analytic hierarchy process (AHP) method calculates the hierarchical priorities for the solution of complex problems.
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TESTING THE PECKING ORDER THEORY AND THE SIGNALING THEORY FOR FARM BUSINESSES
2004Numerous empirical studies in the finance field have tested many theories for firms¡¦ capital structure. Under the assumption of asymmetric information, the pecking order theory proposes the financing order for farm businesses, which implies a negative relationship between their cash flow and leverage.
Zhao, Jianmei +5 more
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