Test Static Tradeoff Models Against Pecking Order Models of Capital Structure in UK Firms

This paper aims at testing the static tradeoff theory and the pecking order theory against British companies during the period of 2008 to 2012. A total sample of 40 companies listed on London Stock Exchange have been established. Through panel data analysis, this study investigates which of these tw...

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Main Author: Wu, Jinhua
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2013
Online Access:https://eprints.nottingham.ac.uk/26585/
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author Wu, Jinhua
author_facet Wu, Jinhua
author_sort Wu, Jinhua
building Nottingham Research Data Repository
collection Online Access
description This paper aims at testing the static tradeoff theory and the pecking order theory against British companies during the period of 2008 to 2012. A total sample of 40 companies listed on London Stock Exchange have been established. Through panel data analysis, this study investigates which of these two theories could better explain the capital structures of companies in the United Kingdom. The empirical analysis demonstrates that the static tradeoff theory has a better explanatory power for British firms while the pecking order theory does not really work in the UK during the selected study time period. Keywords: capital structure, the static tradeoff theory, the pecking order theory
first_indexed 2025-11-14T18:56:33Z
format Dissertation (University of Nottingham only)
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institution University of Nottingham Malaysia Campus
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spelling nottingham-265852017-10-19T13:31:54Z https://eprints.nottingham.ac.uk/26585/ Test Static Tradeoff Models Against Pecking Order Models of Capital Structure in UK Firms Wu, Jinhua This paper aims at testing the static tradeoff theory and the pecking order theory against British companies during the period of 2008 to 2012. A total sample of 40 companies listed on London Stock Exchange have been established. Through panel data analysis, this study investigates which of these two theories could better explain the capital structures of companies in the United Kingdom. The empirical analysis demonstrates that the static tradeoff theory has a better explanatory power for British firms while the pecking order theory does not really work in the UK during the selected study time period. Keywords: capital structure, the static tradeoff theory, the pecking order theory 2013-09-20 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/26585/1/dissertation.pdf Wu, Jinhua (2013) Test Static Tradeoff Models Against Pecking Order Models of Capital Structure in UK Firms. [Dissertation (University of Nottingham only)] (Unpublished)
spellingShingle Wu, Jinhua
Test Static Tradeoff Models Against Pecking Order Models of Capital Structure in UK Firms
title Test Static Tradeoff Models Against Pecking Order Models of Capital Structure in UK Firms
title_full Test Static Tradeoff Models Against Pecking Order Models of Capital Structure in UK Firms
title_fullStr Test Static Tradeoff Models Against Pecking Order Models of Capital Structure in UK Firms
title_full_unstemmed Test Static Tradeoff Models Against Pecking Order Models of Capital Structure in UK Firms
title_short Test Static Tradeoff Models Against Pecking Order Models of Capital Structure in UK Firms
title_sort test static tradeoff models against pecking order models of capital structure in uk firms
url https://eprints.nottingham.ac.uk/26585/