Search results for " pecking order theory"

TRADE-OFF THEORY VS. PECKING ORDER THEORY – EMPIRICAL EVIDENCE FROM THE BALTIC COUNTRIES

2014

Capital structure is of particular importance in estimating the company value; an accurately estimated and selected equity and debt ratio can maximize the company value and minimizes the cost of capital; therefore, this issue is especially significant in the changing conditions of economic development. The main purpose of this study is to simultaneously evaluate the pecking order and trade-off theories of capital structure and determine which one performs better for a sample of companies from the Baltic states. Analysis is conducted on a sample of 75 listed companies (Baltic Stock Exchange) over the period from 1998 to 2011. The authors test theories using panel data and regression analysis…

Capital Structure Decisions in the Biopharmaceutical Industry

2011