A Robustness Check on Debt and the Pecking Order Hypothesis with Asymmetric Information
نویسندگان
چکیده
منابع مشابه
The Pecking Order, Debt Capacity, and Information Asymmetry
We quantify the empirical relevance of the pecking order hypothesis using a novel empirical model and testing strategy that addresses statistical power concerns with previous tests. While the classificatory ability of the pecking order varies significantly depending on whether one interprets the hypothesis in a strict or liberal (e.g., “modified” pecking order) manner, the pecking order is neve...
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Article history: Received 6 March 2012 Received in revised form 30 May 2013 Accepted 4 June 2013 Available online 11 June 2013 We suggest that the limited access to the public debt market is a reason for the violations of pecking order behavior documented in literature. We show that as information asymmetry increases, two effects take place. On the one hand, firms do desire to increase the debt...
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In this paper we test the pecking order and trade-off hypotheses of corporate financing decisions using a cross-section of the largest Chinese listed companies. We build on Allen (1993) and Baskin (1989) to set up three models in which trade-off and pecking order theories give distinctively different predictions: (1) the determinants of leverage, (2) the relationship between leverage and divide...
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Convertible bonds (CBs) are an important asset class but their analysis in function of the equity and bond components has received insufficient attention in France. This study investigates the relation between announcement effects and equity components for 141 French CB issues. We use the CB sensitivity to its underlying common stock as a proxy for the equity component. Our results indicate tha...
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ژورنال
عنوان ژورنال: International Journal of Economics and Finance
سال: 2016
ISSN: 1916-9728,1916-971X
DOI: 10.5539/ijef.v8n6p181