Do ultimate owners follow the pecking order theory?

Rodrigo Zeidan, Koresh Galil () and Offer Moshe Shapir

The Quarterly Review of Economics and Finance, 2018, vol. 67, issue C, 45-50

Abstract: Previous studies that have tested the pecking order theory have been inconclusive. In this paper, we use unique survey results for private Brazilian firms in order to investigate firms’ choice of capital structure. We document that ultimate owners of privately owned firms follow the pecking order theory, even in presence of subsidized loans. We also show that whether a firm is debt constrained or unconstrained does not affect this finding.

Keywords: Pecking order; SME; Capital structure (search for similar items in EconPapers)
JEL-codes: G23 G32 L21 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:quaeco:v:67:y:2018:i:c:p:45-50

DOI: 10.1016/j.qref.2017.04.008

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