An empirical analysis of cross-security information asymmetry and the “pecking order” hypothesis

1995 ◽  
Vol 19 (3) ◽  
pp. 19-29 ◽  
Author(s):  
Roger J. Best ◽  
Ronald W. Best
Keyword(s):  
Information Asymmetry ◽  
Empirical Analysis ◽  
Pecking Order ◽  
Security Information ◽  
Pecking Order Hypothesis

The pecking order, debt capacity, and information asymmetry

2010 ◽  
Vol 95 (3) ◽  
pp. 332-355 ◽  
Author(s):  
Mark T. Leary ◽  
Michael R. Roberts
Keyword(s):  
Information Asymmetry ◽  
Pecking Order ◽  
Debt Capacity

The pecking order hypothesis: does it apply to start‐up firms?

2007 ◽  
Vol 14 (1) ◽  
pp. 8-21 ◽  
Author(s):  
Stuart Paul ◽  
Geoff Whittam ◽  
Janette Wyper
Keyword(s):  
Pecking Order ◽  
Start Up ◽  
Pecking Order Hypothesis

scholarly journals A Robustness Check on Debt and the Pecking Order Hypothesis with Asymmetric Information

2016 ◽  
Vol 8 (6) ◽  
pp. 181
Author(s):  
George Chang
Keyword(s):  
Asymmetric Information ◽  
Closed Form ◽  
Relative Efficiency ◽  
Closed Form Solution ◽  
Form Solution ◽  
Pecking Order ◽  
Continuous State ◽  
Robustness Check ◽  
Pecking Order Hypothesis ◽  
Equity Offering

Daniel and Titman (1995) examined the incentives of firms to signal their values prior to making a new equity offering. By analyzing this issue within a simple framework that encompasses a number of models in the literature, they were able to judge the relative efficiency of various signals that have been proposed. Although their analyses offer valuable insights, the robustness of their model has yet to be checked. This paper examines the parametric assumptions of their model in the section on debt and the pecking order hypothesis. We first generalize the assumptions in the example by Daniel and Titman (1995) to allow for continuous-state of nature. We then derive the resulting closed-form solution for the equilibrium payoffs to the original shareholders of both types firms under different beliefs. Although we only examine the robustness of a particular setting, our methodology can be applied to other settings.

A Survey on Capital Structure Decisions of Hong Kong Firms

2000 ◽  
Vol 03 (03) ◽  
pp. 347-365 ◽  
Author(s):  
Dennis K. K. Fan ◽  
Raymond W. So
Keyword(s):  
Hong Kong ◽  
Capital Structure ◽  
Information Asymmetry ◽  
Firm Size ◽  
Pecking Order ◽  
Listed Firms ◽  
Financing Decisions

In this paper, the results of a survey on capital structure decisions of Hong Kong listed firms are reported. It is found that Hong Kong firms conformed more to the "pecking order" principle than a target long term debt-equity mix in their financing decisions. Financial managers' preferences over alternative capital raising instruments are also investigated. The degree of information asymmetry and firm size are found to have impacts on the ranking of some factors governing capital structure decisions. However, signaling motivation does not play a role in managers' financing decisions.

scholarly journals Determinants of Micro and Small Scale Enterprises’ financing preference in line with POH and Access to Credit: Empirical Evidence from Entrepreneurs in Ethiopia, Benishangul-Gumuz Regional State

2020 ◽  
Author(s):  
Hayelom Abrha Meressa
Keyword(s):  
Logistic Regression ◽  
Regression Analysis ◽  
Logistic Regression Analysis ◽  
Small Scale ◽  
Pecking Order ◽  
Access To Credit ◽  
Regional State ◽  
Financing Preference ◽  
Business Experience ◽  
Pecking Order Hypothesis

Abstract Purpose: The purpose of this study was to examine factors that determine micro and small scale enterprises’ financing preference in line with pecking order theory and access to credit in Benishangul-Gumuz Regional State of Ethiopia.Design / Methodology / Approach: The study used primary data collected using cross sectional survey questionnaire followed by mixed research approach. The sample of this study was 296 enterprises selected using proportional stratified random sampling technique. The data was analyzed using descriptive and logistic regression analysis.Findings: The results of logistic regression analysis revealed that business experience, collateral, gender, motivation and enterprises’ sectoral engagement affect financing preference of enterprises in line with pecking order hypothesis. On the second step, only enterprises that need to raise capital through credit were considered to investigate access to credit determinants. Accordingly, the logistic regression result revealed that business experience, size, sectoral engagement, collateral, interest rate, loan repayment period, financial reporting, preparation of business plan, location and educational background of entrepreneurs affect access to credit of enterprises. Research limitations/Implications: More evidence is needed on enterprises’ financing preference and access to credit determinants before any generalization of the results can be made. In addition, the empirical tests were conducted only on 296 entrepreneurs since 2019. Therefore, the results of the study cannot be assumed to extend beyond this group of entrepreneurs to different study periods.Originality/value: This paper adds value to the literature on the determinants of micro and small scale enterprises’ financing preference in line with pecking order hypothesis and access to credit.

scholarly journals Revisiting External Pecking Order Hypothesis: Evidence from Sri Lankan Companies Capital Structure

2019 ◽  
Vol 08 (04) ◽  
pp. 200-223
Author(s):  
Dewundara L. Prasath Manjula Rathnasingha ◽  
Chanthun P. Heiyanthuduwa
Keyword(s):  
Capital Structure ◽  
Sri Lankan ◽  
Pecking Order ◽  
Pecking Order Hypothesis
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