Abstract
The original pecking order (PO) theory is not able to always justify the differences in financial policies of firms all over the world. However, the analysis of some recent and relevant papers enables us to delineate an “extended” PO theory (or “extended” PO) which can substantially explain the features of capital structure. In particular, the effects of specific factors are considered: new technologies, small and medium size of enterprises, capital markets of developed countries, transitional economies and innovative firm’s life cycle. These factors affect the information asymmetries between management/partners and other stakeholders and consequently lead to the following outcomes: a) they do not undermine the original PO (internal funds, debt, hybrid securities and lastly equity issues); b) they modify the original PO or its content; c) finally, they make possible the simultaneous presence of a particular form of the PO and other streams of literature on capital structure. Also firm control and institutional factors play a role in establishing the characteristics of the financial hierarchies being observed.
References
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Masulis, R. W. e A. N. Korwar (1986). “Seasoned equity offerings: an empirical investigation”, in Journal of Financial Economics, 15 (1/2), 91-118.
Mikkelson, W. H. e M. M. Partch (1986). “Valuation effects of security offerings and the issuance process”, in Journal of Financial Economics, 15 (1/2), 31-60.
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Modigliani, F e M. H. Miller, (1963). “Corporate income taxes and the cost of capital: a correction”, in American Economic Review, 53 (3), 443-453.
Muhtaseb, M. R e G. C. Philippatos (1991). “Determinants of stock price reaction to announcement of equity financing by U.S. firms”, in Applied Financial Economics, 1 (2), 61-69.
Myers, S. C. (1984). “The capital structure puzzle”, in Journal of Finance, 39, July, 575-592.
Myers, S. C e N. S. Majluf (1984). “Corporate financing and investment decisions when firms have information that investors do not have”, in Journal of Financial Economics, 13, 187-221.
Myers, S. C. (2001). “Capital structure”, in Journal of Economic Perspective, 15 (2), Spring, 81-102.
Ou, C. e G. W. Haynes (2006). “Acquisition of additional equity capital by small firms – findings from the national survey of small business finance”, in Small Business Economics, 27, 157-168.
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Ross, S. A. (1977). “The determination of financial structure: the incentive-signalling approach”, in The Bell Journal of Economics, 8, 23-40.
Suchard, J. e M. Singh (2006). “The determinants of the hybrid security issuance decision for Australian firms”, in Pacific-Basin Finance Journal, 14, 269-290.
Shyam-Sunder, L. e S. C. Myers (1999). “Testing static tradeoff against pecking order models of capital structure”, in Journal of Financial Economics, 51, 219-244.
16, 89-104.
Akhigbe, A., J. C. Easterwood e R. R. Pettit (1997). “Wealth effects of corporate debt issues: the impact of issuer motivations”, in Financial Management, 26 (1), 32-47.
Asquith, P. e D. W. Mullins jr (1986). “Equity issues and offering dilution”, in Journal of Financial Economics, 15 (2), 61-89.
Bancel, F. e U. R. Mittoo (2004). “Why do European firms issue convertible debt?”, in European Financial Management, 10 (2), 339-374.
Bianco, M. (1997). “Vincoli finanziari e scelte reali delle imprese italiane: gli effetti di una relazione stabile con una banca”, in Angeloni I., V. Conti e F. Passacantando (a cura di), Le
banche e il finanziamento delle imprese, Società Editrice Il Mulino, Bologna.
Bigelli, M., S. Mengoli e S. Sandri (2001). “I fattori determinanti la struttura finanziaria delle imprese italiane: una verifica empirica sulle società quotate”, in Finanza, Marketing e
Produzione, 3-4 (seconda parte), 71-93.
Bonato, L., R. Hamaui e M. Ratti (1993). “Come spiegare la struttura finanziaria delle imprese italiane?”, in Politica Economica, a. IX, n. 1, 49-99.
Bontempi, M. E. (2002). “The dynamic specification of the modified pecking order theory: its relevance to Italy”, in Empirical Economics, 27, 1-22.
Brealey, R. A., S. C. Myers, F. Allen e S. Sandri, (2006). “Principi di finanza aziendale”, Quinta edizione, McGraw-Hill, Milano.
Brewer, E., H. Genay, W. E. Jackson e P. R. Worthington (1997). “The securities issues decisions: evidence from small business investment companies”, working paper, Federal Reserve Bank of Chicago.
Burlacu, R. (2000). “New evidence on the pecking order hypothesis: the case of French convertible bonds”, in Journal of Multinational Financial Management, 10, 439-459.
Buttignon, F. e F. De Leo (1994). “I fattori determinanti la struttura finanziaria: analisi empirica nel caso italiano”, in Finanza, Imprese e Mercati, a. VI, n. 1, 3-23.
Cassar, G. e S. Holmes (2003). “Capital structure and financing of SMEs: Australian evidence”, in Accounting and Finance, 43, 123-147.
Chen, J. J. (2004). “Determinants of capital structure of Chinese-listed companies”, in Journal of Business Research, 57, 1341-1351.
Chen, J. e R. Strange (2005). “The determinants of capital structure: evidence from Chinese listed companies”, in Economic Change and Restructuring, 38, 11-35.
Dahlstrand, A. L. e D. Cetindamar (2000). “The dynamics of innovation financing in Sweden”, in Venture Capital, 2 (3), 203-221.
Damodaran, A. (2006). “Financing choices across the life cycle”, in Finding the right financing mix: the capital structure decision, http://pages.stern.nyu.edu/~adamodar/
New_Home_Page/cflect.htm
Dann, L. Y. e W. H. Mikkelson (1984). “Convertible debt issuance, capital structure change and financing-related information: some new evidence”, in Journal of Financial
Economics, 13 (2), 157-186.
De Haan, L. e J. Hinloopen (2003). “Preference hierarchies for internal finance, bank loans, bond, and share issues: evidence for Dutch firms”, in Journal of Empirical Finance, 10, 661-681.
Delcoure, N. (2006). “The determinants of capital structure in transitional economies”, in International Review of Economics and Finance, articolo in stampa.
Donaldson, G. (1961). “Corporate debt capacity: a study of corporate debt policy and the determinants of corporate debt capacity”, Harvard Business School, Boston.
Eckbo, B. E. (1986). “Valuation effects of corporate debt offerings”, in Journal of Financial Economics, 15 (1/2), 119-151.
Fama, E. F e K. R. French (2005). “Financing decisions: who issues stock”, in Journal of Financial Economics, 76, 549-582.
Frank, M. Z. e V. K. Goyal (2003). “Testing the pecking order theory of capital structure”, in Journal of Financial Economics, 67, 217-248.
Fulghieri, P. e D. Lukin (2001). “Information production, diluition costs, and optimal security design”, in Journal of Financial Economics, 61, 3-42.
Gaud, P., E. Jani, M. Hoesli e A. Bender (2005). “The capital structure of Swiss companies: an empirical analysis using dynamic panel data”, in European Financial Management,
11 (1), 51-69.
Gaud, P., M. Hoesli e A. Bender (2006). “Deb-equity choice in Europe”, in International Review of Financial Analysis, doi: 10.1016/j.irfa.2006.08.003, articolo in stampa.
Giudici, G. e S. Paleari (2000). “The provision of finance to innovation: a survey conducted among Italian technology-based small firms”, in Journal of Small Business Economics, 14 (1), 37-53.
Harris, M. e A. Raviv (1991). “The theory of capital structure”, Journal of Finance, 46, 297-355.
Hess, A. C. e S. Bhagat (1986). “Size effects of seasoned stock issues: empirical evidence”, in Journal of Business, 59 (4), 567-584.
Hogan, T. e E. Hutson (2005). “Capital structure in new technology-based firms: evidence from the Irish software sector”, in Global Finance Journal, 15, 369-387.
Hyytinen, A. e M. Pajarinen (2002). “Financing of technology intensive small business: some evidence from the ICT industry”, The Research Institute of the Finnish Economy, Discussion paper N. 813.
Jensen, M. C (1986). “Agency costs of free cash flow, corporate finance, and takeovers”, in American Economic Review, May, 76 (2), 323-329.
Jensen, M. C e W. H. Meckling (1976). “Theory of the firm: managerial behavior, agency costs and ownership structure”, in Journal of Financial Management, 3 (4), 305-360.
Kolodny, R. e D. R. Suhler (1985). “Changes in capital structure, new equity issues, and scale effect”, in Journal of Financial Research, 8 (2), 127-136.
Leland, H e D. Pyle (1977). “Informational asymmetries, financial structure and financial intermediation”, in Journal of Finance, 32, 371-387.
Lopez-Garzia J. e C. Aybar-Arias (2000). “An empirical approach to the financial behaviour of small and medium sized companies”, in Small Business Economics, 14, 55-63.
Masulis, R. W. e A. N. Korwar (1986). “Seasoned equity offerings: an empirical investigation”, in Journal of Financial Economics, 15 (1/2), 91-118.
Mikkelson, W. H. e M. M. Partch (1986). “Valuation effects of security offerings and the issuance process”, in Journal of Financial Economics, 15 (1/2), 31-60.
Modigliani, F e M. H. Miller, (1958). “The cost of capital, corporation finance and the theory of investment”, in American Economic Review, 48 (3), 261-297.
Modigliani, F e M. H. Miller, (1963). “Corporate income taxes and the cost of capital: a correction”, in American Economic Review, 53 (3), 443-453.
Muhtaseb, M. R e G. C. Philippatos (1991). “Determinants of stock price reaction to announcement of equity financing by U.S. firms”, in Applied Financial Economics, 1 (2), 61-69.
Myers, S. C. (1984). “The capital structure puzzle”, in Journal of Finance, 39, July, 575-592.
Myers, S. C e N. S. Majluf (1984). “Corporate financing and investment decisions when firms have information that investors do not have”, in Journal of Financial Economics, 13, 187-221.
Myers, S. C. (2001). “Capital structure”, in Journal of Economic Perspective, 15 (2), Spring, 81-102.
Ou, C. e G. W. Haynes (2006). “Acquisition of additional equity capital by small firms – findings from the national survey of small business finance”, in Small Business Economics, 27, 157-168.
Pochetti, G. (2001). Finanza Aziendale. Le funzioni finanziarie d’impresa , in A. Manelli (a cura di), UTET, Torino.
Rajan, R. G. e L. Zingales (1995). “What do we know about capital structure? Some evidence from international data”, in Journal of Finance, 50, 1421-1460.
Ross, S. A. (1977). “The determination of financial structure: the incentive-signalling approach”, in The Bell Journal of Economics, 8, 23-40.
Suchard, J. e M. Singh (2006). “The determinants of the hybrid security issuance decision for Australian firms”, in Pacific-Basin Finance Journal, 14, 269-290.
Shyam-Sunder, L. e S. C. Myers (1999). “Testing static tradeoff against pecking order models of capital structure”, in Journal of Financial Economics, 51, 219-244.
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