Search Results - subject:"pecking order theory"

Firm Maturity and the Pecking Order Theory

Bulan, Laarni - 2011

We 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 … capacity. After controlling for firm maturity, the pecking order theory describes the financing behavior of firms fairly well …

Persistent link: https://www.econbiz.de/10013130199

Deviation from the Target Capital Structure and Acquisition Choices

Uysal, Vahap - 2011

This study finds that managers take deviations from their target capital structures into account when planning and structuring acquisitions. Specifically, firms that are overleveraged relative to their target debt ratios are less likely to make acquisitions and are less likely to use cash in...

Persistent link: https://www.econbiz.de/10013132782

Managerial Autonomy, Allocation of Control Rights and Optimal Capital Structure

Boot, Arnoud W. A. - 2011

We examine the design of control rights of external financiers and how these interact with the firm's security issuance and capital structure when the firm's initial owners and manager may disagree with new investors over project choice. The first main result is an ex ante managerial preference...

Persistent link: https://www.econbiz.de/10013132965

Contingent Capital with a Capital-Ratio Trigger

Glasserman, Paul - 2011

Contingent capital in the form of debt that converts to equity when a bank faces financial distress has been proposed as a mechanism to enhance financial stability and avoid costly government rescues. Specific proposals vary in their choice of conversion trigger and conversion mechanism. We...

Persistent link: https://www.econbiz.de/10013133001

A Theory of Asset Pricing Based on Heterogeneous Information

Albagli, Elias - 2011

We propose a theory of asset prices that emphasizes heterogeneous information as the main element determining prices of different securities. Our main analytical innovation is in formulating a model of noisy information aggregation through asset prices, which is parsimonious and tractable, yet...

Persistent link: https://www.econbiz.de/10012461110

The Static Trade-Off Against the Pecking Order Hypotheses of Firms’ Capital Structure

2011

This paper presents a literature review on some proxy variables and methodologies that can be used to test two competing hypotheses on capital structure, namely the static trade-off and the pecking order hypotheses. The choice of proxy variables and methodology of research are very important in...

Persistent link: https://www.econbiz.de/10013131909

HOW SME UNIQUENESS AFFECTS CAPITAL STRUCTURE: EVIDENCE FROM A 1994-1998 SPANISH DATA PANEL

Mira, Francisco Sogorb- - Instituto Valenciano de Investigaciones Económicas (IVIE) - 2002

The principal aim of this paper is to test how firm characteristics affect Small and Medium Enterprise (SME) capital structure. We carry out an empirical analysis over a panel data of 6482 non?financial Spanish SMEs along the five-year period 1994?1998, modelling the leverage ratio as a function...

Persistent link: https://www.econbiz.de/10005212514

Firm, industry, and country level determinants of capital structure: evidence from Pakistan

Ahsan, Tanveer; Wang, Man; Qureshi, Muhammad Azeem - In: South Asian Journal of Global Business Research 5 (2016) 3, pp. 362-384

Purpose The purpose of this paper is to find out firm, industry, and country level determinants of capital structure of Pakistani listed non-financial firms. Design/methodology/approach The authors use a fixed effects panel data model over a 39 years (1972-2010) unbalanced panel data of...

Persistent link: https://www.econbiz.de/10015005852

Capital structure in the modern world

Miglo, Anton - 2016

Persistent link: https://www.econbiz.de/10014012139

Effect of higher capital requirements on the funding costs of Australian banks

Cummings, James R.; Wright, Sue - In: The Australian economic review 49 (2016) 1, pp. 44-53

Persistent link: https://www.econbiz.de/10011491747