Yu, Darwin; Aquino, Rodolfo - In: Applied Economics 41 (2009) 15, pp. 1973-1990
This study examines the ability of the Trade-Off (TO) model and the Pecking Order (PO) model to explain the financing behaviour of Philippine listed firms from 1990 to 2001. Using panel data regression techniques, the firms' leverage ratios move towards their optimal level, holding up the TO...