Capital structure: New evidence of optimality and Pecking Order Theory

Ghosh, Arvin; Cai, Francis
January 1999
American Business Review;Jan1999, Vol. 17 Issue 1, p32
Academic Journal
Analyzes whether firms converge toward the optimal capital structure over time or follow the Pecking Order Theory (POT). Value of the gamma and the test statistic; Strong trend toward convergence; Summary of the asymmetric convergence by industry during 1974-1992; Results for POT preference by year during 1974-1992.


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