Testing static tradeoff against pecking order models of capital structure: a critical comment

By Robert S. Chirinko, A. Singha. 2000

465 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/7955c738b7e14c66fdd620cb9b7286bcc35b9298

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Citations in the corpus

The Capital Structure Decisions of New Firms (2010, unknown): “The final two columns of Table 5 split the data according to whether the firm continued to operated throughout the first three waves of the KFS, or whether the firm ceased operations.(4) Firms that survive look very much like the overall average reported in Table 4.”
Testing the Pecking Order Theory of Capital Structure (2003, unknown): “Chirinko and Singha (2000) question the interpretation of the Shyam-Sunder and Myers (1999) regression test.”
Access to Capital, Capital Structure, and the Funding of the Firm (2009, result): “However, as Chirinko and Singha (2000) point out, this result could also be consistent with the trade-off theory: Having a higher target debt ratio due to a higher cost of equity capital, private firms have a higher proportion of debt to equity financing.”
The Pecking Order, Debt Capacity, and Information Asymmetry (2010, unknown): “to identify the extent of pecking order behavior; however, Chirinko and Singha (2000) show that this test has no power to discriminate among alternative explanations.”
Trade-Off and Pecking Order Theories of Debt (2007, methodology): “35Chirinko and Singha (2000) use several examples to illustrate that Shyam-Sunder and Myers’s tests have low power.”
Global leverage adjustments, uncertainty, and country institutional strength (2018, methodology): “Some studies question the information contained in the estimates of the speed of adjustment that use a partial adjustment model (e.g., Shyam-Sunder and Myers, 1999; Chen and Zhao, 2007; Chang and Dasgupta, 2009; Graham and Leary, 2011; Hovakimian and Li, 2011, 2012; Iliev and Welch, 2015).”
Financing Major Investments: Information About Capital Structure Decisions (2014, background): “We also most strictly separate Built investments from Acquisitions and find some interesting differences in their financing patterns.4”
Pecking order or trade-off hypothesis? Evidence on the capital structure of Chinese companies (2005, background): “To ensure comparability 8 This issue is discussed by Chirinko and Singha (2000) in their comment on the pecking order tests of Shyam-Sunder and Myers (1999), and by Allen (1993).”
Company financing, capital structure and ownership: a survey and implications for developing countries (2001, background): “This is questioned by Chirinko and Singha (2000) who argue that the analysis is not robust to changes in the underlying model, particularly in the specification of alternative hypotheses. For example, the regression of ? Dt on DEFt cannot easily distinguish between the pecking order as proposed by M”
Debt Capacity and Tests of Capital Structure Theories (2010, methodology): “In contrast, Frank and Goyal (2003) show that Shyam-Sunder and Myers’ empirical findings supporting the pecking order do not survive when a broader sample of firms or a longer time series is used, wile Chirinko and Singha (2000) argue that the empirical test used by Shyam-Sunder and Myers has little”
Financing technology-based small firms in Europe: what do we know? (2012, background): “In fact, the test lacks statistical power if equity is a large proportion of capital or is in the middle of the financial hierarchy (Chirinko and Singha 2000). models.”
The international zero-leverage phenomenon (2013, unknown): “Debt capacity is usually defined as a “sufficiently high” debt ratio so that the costs of financial distress curtail further debt issues (Shyam-Sunder and Myers 1999; Chirinko and Singha 2000).”
Capital Structure, Risk and Asymmetric Information (2011, unknown): “Chirinko and Singha (2000) pointed out that running regression (2) on the entire sample when there is a significant amount of equity financing biases the coefficient b towards zero.”