Trade-off-theory vs. pecking order theory and the determinants of corporate leverage: Evidence from a panel data analysis upon French SMEs (2002–2010)

Autor:	Philippe Adair, Mohamed Adaskou
Jazyk:	angličtina
Rok vydání:	2015
Předmět:	capital structure corporate leverage panel data pecking order theory SMEs trade-off theory Finance HG1-9999 Economic theory. Demography HB1-3840
Zdroj:	Cogent Economics & Finance, Vol 3, Iss 1 (2015)
Druh dokumentu:	article
ISSN:	2332-2039 23322039
DOI:	10.1080/23322039.2015.1006477
Popis:	We test the assumptions of trade-off theory (TOT) and pecking order theory (POT) regarding corporate leverage. The dependent variable being the debt ratio, we apply a linear model upon a balanced panel data-set of 2,370 French SMEs over the period 2002–2010. In accordance to TOT, trade credit acts as a signal to creditors who have no private information about the firm and access to credit relies on guarantees. The relationship between corporate leverage and the profitability of SMEs as well as growth opportunities support POT. However, the relationship between corporate leverage and the age of SMEs, as well as their size, remains inconclusive with respect to both theories.
Databáze:	Directory of Open Access Journals
Externí odkaz:	https://doaj.org/article/878bc6de08464517a85c0c833839e866 Zobrazit plný text záznamu View record in DOAJ Plný text ve formátu PDF Plný text ve formátu HTML
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