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...

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...

The pecking order hypothesis predicts that equity costs exceed debt costs when managers require outside funding. Asymmetric information costs motivates this hypothesis. I use an econometric model to estimate issuance costs managers face to test the prediction and motivation of the pecking order. The estimates challenge the existence of a pecking order. First, debt costs increase from about 50% ...

The pecking and peeping behavior of isolate, pairand group-reared chicks tested singly with and without mirrors were studied during 2-hr tests. Results supported the hypothesis that the social facilitation of pecking is disrupted by test novelty (discrepancy between testing and rearing conditions). Mirror exposure resulted in the greatest enhancement of pecking and least peeping in pair-reared ...

................................................................................................................................ 37 CHAPTER 1: General Introduction ......................................................................................... 44 TYPES OF BIRD-TO-BIRD PECKING .................................................................................. 47 HOUSING SYSTEMS ...........