umu.sePublications
Change search
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf
Reconciling capital structure theories: How pecking order and tradeoff theories can be equated
Umeå University, Faculty of Social Sciences, Umeå School of Business.
2010 (English)Independent thesis Basic level (degree of Bachelor), 10 credits / 15 HE creditsStudent thesis
Abstract [en]

In this paper we study the pecking order and tradeoff theories of capital structure on a sample of 121 Swedish, non-financial, listed firms over the period between 2000 - 2009. We find that the Swedish firms’ financing behavior appears to have features consistent with the predictions of both theories. The evidence shows a preference for a financing behavior consistent with the tradeoff theory for the whole sample and for a sample of small firms, whereas large firms appear to follow a pecking order on their financing decisions. We show that under sufficient conditions both theories might be seen as “reconciled” and not mutually exclusive, and we find evidence for the large firms of our sample consistent with this notion.

Place, publisher, year, edition, pages
2010. , 47 p.
Keyword [en]
Capital structure, Pecking order theory, Tradeoff theory, Reconciliation, Mean reversion, Sweden
National Category
Business Administration
Identifiers
URN: urn:nbn:se:umu:diva-34930OAI: oai:DiVA.org:umu-34930DiVA: diva2:326965
Uppsok
Social and Behavioural Science, Law
Supervisors
Examiners
Available from: 2010-06-28 Created: 2010-06-24 Last updated: 2010-07-02Bibliographically approved

Open Access in DiVA

fulltext(640 kB)2949 downloads
File information
File name FULLTEXT01.pdfFile size 640 kBChecksum SHA-512
c71a854f1bd1a0ce8a4e852f37c5a29e123ab6bfd8447bbee1d7b517c00b09847fb7b992a85e35e532dffc8bfb1fa348be6fcbdbba012e3713e44e5b0bd419fc
Type fulltextMimetype application/pdf

By organisation
Umeå School of Business
Business Administration

Search outside of DiVA

GoogleGoogle Scholar
Total: 2949 downloads
The number of downloads is the sum of all downloads of full texts. It may include eg previous versions that are now no longer available

urn-nbn

Altmetric score

urn-nbn
Total: 1142 hits
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf