skip to main content
Language:
Search Limited to: Search Limited to: Resource type Show Results with: Show Results with: Search type Index

TRADE-OFF THEORY VS. PECKING ORDER THEORY - EMPIRICAL EVIDENCE FROM THE BALTIC COUNTRIES

Economic and Social Development: Book of Proceedings, 2013, p.83

Copyright Varazdin Development and Entrepreneurship Agency (VADEA) Apr 5, 2013 ;ISSN: 1849-6903 ;EISSN: 1849-7535

Full text available

Citations Cited by
  • Title:
    TRADE-OFF THEORY VS. PECKING ORDER THEORY - EMPIRICAL EVIDENCE FROM THE BALTIC COUNTRIES
  • Author: Berzkalne, Irina ; Zelgalve, Elvira
  • Subjects: Capital structure ; Debt to equity ratio ; Financial leverage ; Studies ; Tradeoff analysis
  • Is Part Of: Economic and Social Development: Book of Proceedings, 2013, p.83
  • Description: Capital structure is of particular importance in estimating the company value; an accurately estimated and selected equity and debt ratio can maximize the company value and minimizes the cost of capital; therefore, this issue is especially significant in the changing conditions of economic development. The main purpose of this study is to simultaneously evaluate the pecking order and trade-off theories of capital structure and determine which one performs better for a sample of companies from the Baltic states. Analysis is conducted on a sample of 75 listed companies (Baltic Stock Exchange) over the period from 1998 to 2011. The authors test theories using panel data and regression analysis. The empirical results show that listed companies in Latvia, compared to the other countries, can be characterized by the lowest debt ratio, however an increase in the average debt ratio can be observed, therefore the gap has been reduced in the recent years. The study did not find evidence supporting pecking order theory, but results show that companies adjust their debt levels according to target debt.
  • Publisher: Varazdin: Varazdin Development and Entrepreneurship Agency (VADEA)
  • Language: English
  • Identifier: ISSN: 1849-6903
    EISSN: 1849-7535
  • Source: ProQuest Central
Back to results list
INSPIRE LIBRARY - TON DUC THANG UNIVERSITY (84-028) 37 755 057 Feedback
19 Nguyen Huu Tho St. Dist.7, HCM thuvien@tdtu.edu.vn

Copyright © 2017 INSPIRE LIBRARY - TON DUC THANG UNIVERSITY

Searching Remote Databases, Please Wait