Examining pecking order versus trade-off theories of capital structure: New evidence from Japanese firms
This study empirically tests the traditional trade‐off model against the pecking order model of capital structure using data from the Japanese listed companies on the Tokyo Stock Exchange. A pooled sample of 1,362 publicly listed nonfinancial companies from 1991 to 2015 is used to establish the rela...
| Main Authors: | , , |
|---|---|
| Format: | Journal Article |
| Published: |
John Wiley and Sons
2018
|
| Online Access: | https://onlinelibrary.wiley.com/doi/10.1002/ijfe.1657 http://hdl.handle.net/20.500.11937/71714 |
| _version_ | 1848762553111412736 |
|---|---|
| author | Salim, Ruhul Jarallah, S. Saleh, A. |
| author_facet | Salim, Ruhul Jarallah, S. Saleh, A. |
| author_sort | Salim, Ruhul |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | This study empirically tests the traditional trade‐off model against the pecking order model of capital structure using data from the Japanese listed companies on the Tokyo Stock Exchange. A pooled sample of 1,362 publicly listed nonfinancial companies from 1991 to 2015 is used to establish the relationship between leverage and its determinants by using the generalized methods of moments econometric framework. The results show that the financing pattern of Japanese firms is consistent with the basic pecking order model, which predicts external debt financing driven by the internal financial deficit. |
| first_indexed | 2025-11-14T10:49:23Z |
| format | Journal Article |
| id | curtin-20.500.11937-71714 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-14T10:49:23Z |
| publishDate | 2018 |
| publisher | John Wiley and Sons |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-717142019-02-19T04:27:36Z Examining pecking order versus trade-off theories of capital structure: New evidence from Japanese firms Salim, Ruhul Jarallah, S. Saleh, A. This study empirically tests the traditional trade‐off model against the pecking order model of capital structure using data from the Japanese listed companies on the Tokyo Stock Exchange. A pooled sample of 1,362 publicly listed nonfinancial companies from 1991 to 2015 is used to establish the relationship between leverage and its determinants by using the generalized methods of moments econometric framework. The results show that the financing pattern of Japanese firms is consistent with the basic pecking order model, which predicts external debt financing driven by the internal financial deficit. 2018 Journal Article http://hdl.handle.net/20.500.11937/71714 10.1002/ijfe.1657 https://onlinelibrary.wiley.com/doi/10.1002/ijfe.1657 John Wiley and Sons restricted |
| spellingShingle | Salim, Ruhul Jarallah, S. Saleh, A. Examining pecking order versus trade-off theories of capital structure: New evidence from Japanese firms |
| title | Examining pecking order versus trade-off theories of capital structure: New evidence from Japanese firms |
| title_full | Examining pecking order versus trade-off theories of capital structure: New evidence from Japanese firms |
| title_fullStr | Examining pecking order versus trade-off theories of capital structure: New evidence from Japanese firms |
| title_full_unstemmed | Examining pecking order versus trade-off theories of capital structure: New evidence from Japanese firms |
| title_short | Examining pecking order versus trade-off theories of capital structure: New evidence from Japanese firms |
| title_sort | examining pecking order versus trade-off theories of capital structure: new evidence from japanese firms |
| url | https://onlinelibrary.wiley.com/doi/10.1002/ijfe.1657 http://hdl.handle.net/20.500.11937/71714 |