Capital structure decisions in the commercial sector: Pecking Order or Trade Off?

Abstract:

This study addresses a contrast of the theoretical foundations of Pecking Order and Trade Off through the panel data methodology,appliedtoEcuadoriancommercialcompanies.Theresultsshowthatthecashflowdeficit,size,growthopportunity andtangibilityoftheassetsdefinethecapitalstructure.Inaddition,itconstitutesacontributiontothescientificdebateonthe modern Pecking Order theory, observing that short and long-term financing decisions are based on the internal resources generatedandtheinvestmentsrequiredforanormalbusinessoperation.

Año de publicación:

2021

Keywords:

• Debt
• Leverage
• Determinants of capital structure
• Capital structure

Fuente:

scopus