Financing Preferences of Spanish Firms: Evidence on the Pecking Order Theory

• Published in: Review of quantitative finance and accounting Vol. 25; no. 4; pp. 341 - 355
• Main Authors: Sánchez-Vidal, Javier, Martín-Ugedo, Juan Francisco
• Format: Journal Article
• Language: English
• Published: New York Springer Nature B.V 01.12.2005
• Subjects: Accounting; Asymmetry; Bond issues; Business management; Business strategies; Capital; Capital markets; Capital structure; Companies; Corporate finance; Data analysis; Debt; Debt financing; Economic models; Economic theory; Empirical research; Equity; Finance; Hierarchy; Investments; Long term debt; Market structure; Net present value; Panel data; Retained earnings; Small & medium sized enterprises-SME; Spain; Stockholders; Studies; Theory; Spain

This paper analyses some of the empirical implications of the pecking order theory in the Spanish market using a panel data analysis of 1,566 firms over 1994-2000. The results show that the pecking order theory holds for most subsamples analyzed, particularly for the small and medium-sized enterpris...