Please use this identifier to cite or link to this item:https://hdl.handle.net/20.500.12259/90561
Type of publication: conference paper
Type of publication (PDB): Straipsnis nerecenzuojamoje Lietuvos konferencijos medžiagoje / Article in non-peer-reviewed Lithuanian conference proceedings (P2c)
Field of Science: Ekonomika / Economics (S004)
Author(s): Kaselis, Robertas
Title: Įmonių kapitalo struktūros formavimo pagal pasirinkimo eilės teoriją testavimo metodika
Other Title: Testing procedure of capital structure formation under pecking order theory in the companies
Is part of: Jaunasis mokslininkas 2017 [elektroninis išteklius] : socialiniai mokslai : studentų mokslinės konferencijos straipsnių rinkinys. Akademija, 2017
Extent: p. 144-150
Date: 2017
Abstract: Pecking order theory is frequently compared with the Trade-off, Market timing, and Agency theories. Trade-off Theory is linked to the ratio of debt and equity via the gain of profit tax shield. And when we are talking about the Pecking order theory, the internal funds are the priority. When the Pecking order theory is compared to the Market timing theory, one similarity is observed: both theories neglect the optimal capital structure. There are some aspects in which the Agency theory is similar to the Pecking order theory. One of the similarities between the theories is that they both convey about the existence of information asymmetry between the company’s management and shareholders. Two stages are undertaken to test the behaviour of the companies under the pecking order theory. The first stage is to assess whether the company uses retained earnings as an internal source of financing investment. Adoption of the hypothesis can be confirmed by the assumption that the investment is equal to the company's retained earnings as a source of internal funding. If the hypothesis is rejected, this means that the company does not have sufficient retained earnings to finance investment, and it is likely that it will look for external sources of funding. If the company has an investment demand that is higher than retained earnings, then it is admitted to the second stage of the investigation. During the second stage of the research it is examined whether the chosen company behaves according to a priority under pecking order theory when using an external financing: firstly, the investments are financed by borrowed capital and then the shares are issued
Internet: http://dspace.lzuu.lt/handle/1/5593
Affiliation(s): Vytauto Didžiojo universitetas
Žemės ūkio akademija
Appears in Collections:Universiteto mokslo publikacijos / University Research Publications

Files in This Item:
marc.xml5.46 kBXMLView/Open

MARC21 XML metadata

Show full item record
Export via OAI-PMH Interface in XML Formats
Export to Other Non-XML Formats


CORE Recommender

Page view(s)

91
checked on Jun 6, 2021

Download(s)

26
checked on Jun 6, 2021

Google ScholarTM

Check


Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.