Journal ArticleDOI
Trade-off Theory vs Pecking Order Theory Revisited: Evidence from India
Priyanka Singh,Brajesh Kumar +1 more
TLDR
The authors empirically tested the two competing theories of capital structure: trade-off theory and the pecking order theory using the time series hypothesis, and found that the Pecking Order theory outperformed the tradeoff theory.Abstract:
This 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 emergiread more
Citations
More filters
Journal ArticleDOI
Capital structure inconclusiveness: evidence from Malaysia, Thailand and Singapore
TL;DR: In this article, the authors examined the possible factors contributing to the issue of inconclusiveness in capital structure studies and tried to provide logical explanations to the unresolved issue of inconsistencies in the relationship between factors identified and leverage.
Journal ArticleDOI
The Concept of Financial Sustainability Measurement: A Case of Food Companies from Northern Europe
TL;DR: In this paper, the authors applied fuzzy logic to quantify complex interrelations among various financial factors and classify companies according to the level of their financial sustainability, which measured a relative level of financial sustainability of food companies.
Journal ArticleDOI
Capital Structure Choice, Information Asymmetry, and Debt Capacity: Evidence from India
Surenderrao Komera,Jijo Lukose +1 more
TL;DR: In this article, the relevance of the pecking order theory of capital structure among emerging market firms in the light of their debt capacity concerns was examined, and the authors found that the theory fares poorly among firms that face higher asymmetric information costs.
Journal ArticleDOI
Board composition and capital structure: evidence from Kenya
TL;DR: In this article, the effect of board composition on capital structure of a firm was examined using data from firms listed in the Nairobi Securities Exchange covering the period 2004-2012.
Journal ArticleDOI
Capital structure dynamics: China and India (Chindia) perspective
TL;DR: In this article, the authors investigate the dynamics of capital structure for businesses in China and India and investigate whether and how they adjust their capital structures to witness the trade-off behavior in the light of different macro-level factors.
References
More filters
Journal Article
The Cost of Capital, Corporation Finance and the Theory of Investment
TL;DR: In this article, the effect of financial structure on market valuations has been investigated and a theory of investment of the firm under conditions of uncertainty has been developed for the cost-of-capital problem.
Journal ArticleDOI
Corporate financing and investment decisions when firms have information that investors do not have
TL;DR: In this paper, a firm that must issue common stock to raise cash to undertake a valuable investment opportunity is considered, and an equilibrium model of the issue-invest decision is developed under these assumptions.
Journal ArticleDOI
The Capital Structure Puzzle
TL;DR: The Capital Structure Puzzle as discussed by the authors is a well-known problem in finance, and it has been studied extensively in the literature, e.g., The Journal of Finance, Vol. 39, No. 3, 1983 (Jul., 1984), pp. 575-592.
Journal ArticleDOI
The Theory of Capital Structure
Milton Harris,Artur Raviv +1 more
TL;DR: In this article, a survey of capital structure theories based on agency costs, asymmetric information, product/input market interactions, and corporate control considerations is presented, with a brief overview of the papers surveyed and their relation to each other.
Journal ArticleDOI
Testing Trade-Off and Pecking Order Predictions About Dividends and Debt
Eugene F. Fama,Kenneth R. French +1 more
TL;DR: The pecking-order model of finance as mentioned in this paper predicts that firms with more investments have lower long-term dividend payouts, while firms with fewer investments have higher dividend payout, which is consistent with the trade-off model and complex pecking order model.