Testing static tradeoff against pecking order models of capital structure

• 成果类型: Article
• 署名作者: Shyam-Sunder, L; Myers, SC
• 署名单位: Massachusetts Institute of Technology (MIT)
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/S0304-405X(98)00051-8
• 发表日期: 1999
• 页码: 219-244
• 关键词: financing; capital structure; static tradeoff theory; pecking order theory

摘要

This paper tests traditional capital structure models against the alternative of a pecking order model of corporate financing. The basic pecking order model, which predicts external debt financing driven by the internal financial deficit, has much greater time-series explanatory power than a static tradeoff model, which predicts that each firm adjusts gradually toward an optimal debt ratio. We show that our tests have the power to reject the pecking order against alternative tradeoff hypotheses. The statistical power of some usual tests of the tradeoff model is virtually nil. (C) 1999 Elsevier Science S.A. All rights reserved.