The Pecking Order Theory: Evidence from Malaysia

The pecking-order theory of capital structure, which predicts that firms prefer internal to external finance, is one of the most influential theories of corporate leverage. This study examines whether the Malaysian listed companies follow a pecking order from debt to equity. Using the entire cross-s...

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Main Author: Poon, Wei Leng
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2009
Online Access:https://eprints.nottingham.ac.uk/23997/
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author Poon, Wei Leng
author_facet Poon, Wei Leng
author_sort Poon, Wei Leng
building Nottingham Research Data Repository
collection Online Access
description The pecking-order theory of capital structure, which predicts that firms prefer internal to external finance, is one of the most influential theories of corporate leverage. This study examines whether the Malaysian listed companies follow a pecking order from debt to equity. Using the entire cross-section sample of Malaysian listed companies in 2007, evidence is found to support that Malaysian listed companies follow a pecking order when they need funds to finance investment projects. Further subsample analyses indicate that medium-sized companies and large-sized companies follow a pecking order and small-sized companies do not. These results suggest that the Malaysian capital market is well-developed.
first_indexed 2025-11-14T18:48:13Z
format Dissertation (University of Nottingham only)
id nottingham-23997
institution University of Nottingham Malaysia Campus
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language English
last_indexed 2025-11-14T18:48:13Z
publishDate 2009
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spelling nottingham-239972018-02-15T20:57:55Z https://eprints.nottingham.ac.uk/23997/ The Pecking Order Theory: Evidence from Malaysia Poon, Wei Leng The pecking-order theory of capital structure, which predicts that firms prefer internal to external finance, is one of the most influential theories of corporate leverage. This study examines whether the Malaysian listed companies follow a pecking order from debt to equity. Using the entire cross-section sample of Malaysian listed companies in 2007, evidence is found to support that Malaysian listed companies follow a pecking order when they need funds to finance investment projects. Further subsample analyses indicate that medium-sized companies and large-sized companies follow a pecking order and small-sized companies do not. These results suggest that the Malaysian capital market is well-developed. 2009 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/23997/1/poonweiling.pdf Poon, Wei Leng (2009) The Pecking Order Theory: Evidence from Malaysia. [Dissertation (University of Nottingham only)] (Unpublished)
spellingShingle Poon, Wei Leng
The Pecking Order Theory: Evidence from Malaysia
title The Pecking Order Theory: Evidence from Malaysia
title_full The Pecking Order Theory: Evidence from Malaysia
title_fullStr The Pecking Order Theory: Evidence from Malaysia
title_full_unstemmed The Pecking Order Theory: Evidence from Malaysia
title_short The Pecking Order Theory: Evidence from Malaysia
title_sort pecking order theory: evidence from malaysia
url https://eprints.nottingham.ac.uk/23997/