The Pecking Order, Trade-off, Signaling, and Market-Timing Models
Miglo, Anton (2011) The Pecking Order, Trade-off, Signaling, and Market-Timing Models. In: Capital Structure and Corporate Financing Decisions: Theory, Evidence, and Practice. Robert W. Kolb Series . Wiley, pp. 171-190. ISBN 978-0-470-56952-8
Full text not available from this repository.Abstract
The financial crisis of 2008-2009 forced financial economists to look critically at capital structure theory because the problems faced by many companies stemmed from their financing policies. This chapter surveys four major capital structure theories: trade-off, pecking order, signaling, and market timing. These theories directly relate to asymmetric information, agency problems, taxes, and bankruptcy costs. For each theory, a basic model and its implications are presented. These implications are compared to the available research evidence. This is followed by an overview of pros and cons for each theory. A discussion of major recent papers and suggestions for future research are provided.
| Item Type: | Book Section | ||||||
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| Subjects: | CAH17 - business and management > CAH17-01 - business and management > CAH17-01-02 - business studies CAH17 - business and management > CAH17-01 - business and management > CAH17-01-04 - management studies CAH17 - business and management > CAH17-01 - business and management > CAH17-01-07 - finance |
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| Divisions: | Faculty of Business, Law and Social Sciences > Birmingham City Business School | ||||||
| Depositing User: | Anton Miglo | ||||||
| Date Deposited: | 21 Aug 2018 07:59 | ||||||
| Last Modified: | 22 Mar 2023 11:49 | ||||||
| URI: | https://www.open-access.bcu.ac.uk/id/eprint/6247 |
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