Testing the Pecking Order Theory of Capital Structure

By Murray Z. Frank, Vidhan K. Goyal. 2003

2,793 citations recorded by the source corpus.

Subfields: Accounting, Finance

View Paper: https://www.semanticscholar.org/paper/61f944c7c87978b147ce642c576c23b826dbd6a8

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Accounting

1. Murillo Campello
2. V. Dang
3. Jarrad Harford
4. Heitor Almeida
5. John R. Graham
6. René M. Stulz
7. Vahap Bülent Uysal
8. Murray Z. Frank

In Finance

1. V. Dang
2. Murillo Campello
3. Jarrad Harford
4. Heitor Almeida
5. Vahap Bülent Uysal
6. Michael R. Roberts
7. John R. Graham
8. Vidhan K. Goyal

Citations in the corpus

• Financial Expertise of Directors (2008, neutral): “(See, e.g., Frank and Goyal, 2003).”
• Determinants of Capital Structure Empirical Evidence from Financial Services Listed Firms in China (2012, positive): “Frank and Goyal (2002) also find that large firms tend to follow the pecking order.”
• Accounting Conservatism and Firm Investment Efficiency (2016, neutral): “6 Titman and Wessels (1988), Harris and Raviv (1991), Leland (1994), Rajan and Zingales (1995), Barclay and Smith (1999), Hovakimian et al. (2001), Fama and French (2002), Frank and Goyal (2003, 2009), Hovakimian (2004), Chang et al. (2006, 2009), and Rauh and Sufi (2010).”
• Empirical Capital Structure: A Review (2009, neutral): “In contrast to Shyam-Sunder and Meyers (1999), who test for a unit coefficient on the aggregate leverage deficit, Frank and Goyal (2003) test for unit coefficients on each of the components of the leverage deficit.”
• Financing Decisions in Family Businesses: A Review and Suggestions for Developing the Field (2017, background): “…agency theory and other traditional finance theories such as pecking order theory and trade-off theory are among the dominant frameworks used by family business researchers in studying financing decisions (Fama & French, 2002; Frank & Goyal, 2003; Harris & Raviv, 1991; Titman & Wessels, 1988).”
• Real Assets and Capital Structure (2013, positive): “7In the capital structure literature, coefficients for OverallTangibility range from 0.18 in Frank and Goyal (2003) to 0.32 in Rajan and Zingales (1995).”
• An Analysis of the Financing Decisions of REITs: The Role of Market Timing and Target Leverage (2010, neutral): “13 Hovakimian et al. (2001), Baker and Wurgler (2002), Frank and Goyal (2003) , Huang and Ritter (2004)”
• Partial Adjustment Toward Target Capital Structures (2006, background): “Yet at the same time, Graham and Harvey's [2001] survey evidence indicates that 81% of firms consider a target debt ratio or target range when making their debt decisions.”