Corporate Debt Capacity: A Study of Corporate Debt Policy and the Determination of Corporate Debt Capacity

By G. Donaldson. 2000

730 citations recorded by the source corpus.

Subfields: Accounting, Economics and Econometrics, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/a3e48411c354d9aff88ca43f6e15ecdbaae49be0

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Citations in the corpus

The Determinants of Capital Structure Choice: Evidence from Polish Companies (2007, background): “It was first observed by Donaldson (1961) that firms, instead of aiming towards a target-specific capital structure, choose a type of capital according to the following preference order: internal finance, debt, equity.”
Leveraged Network-Based Financial Accelerator (2013, background): “In the economic literature there are many theories on capital structure, but, according to Flannery and Rangan (2006), three are the most important: • “pecking order”, hypotesized by Donaldson (1961) and revived by Myers and Majluf (1984), based on information asymmetry.”
Financing technology-based small firms in Europe: what do we know? (2012, background): “2 Asymmetric information and the entailed credit market failure are the central tenets of the pecking order theory (Donaldson 1961, Myers 1984).”
Company financing, capital structure and ownership: a survey and implications for developing countries (2001, background): “On the other hand, Donaldson (1961) argues that, as a result of transaction costs, firms will prefer to raise capital from retained earnings, then from debt and finally from issuing new equity: the transactions-costs motivation for the pecking order hypothesis. Myers (1984) and Myers and Majluf (198”
Capital Structure Decisions: Which Factors are Reliably Important? (2009, background): “Pecking order theory The pecking order theory has long roots in the descriptive literature (Donaldson, 1961), and it was clearly articulated by Myers (1984).”
Financial Development and the Cash Flow Sensitivity of Cash (2006, neutral): “6The evidence on the preference of firms toward internally generated funds as a primary means to finance investment expenditures dates back to Donaldson (1961). 7An underlying assumption is that managers maximize shareholder wealth so that investors are not concerned about managers’ use of liquid as”
Partial Adjustment Toward Target Capital Structures (2006, methodology): “Myers [1984] contrasted this tradeoff theory of capital structure with an updated version of Donaldson’s [1961] “pecking order” theory, under which information asymmetries lead managers to perceive that the market generally underprices their shares.”
Impact of state ownership and control mechanisms on the performance of group affiliated companies in China (2007, methodology): “Third, we measured the average log value of leverage that has been defined as debt divided by equity, reflecting the influences from debt holders and shareholders on the performance impact (Barton & Gordon, 1988; Donaldson, 1961 ).”
Firms' Histories and Their Capital Structures (2004, positive): “This evidence, which has been attributed to the Donaldson (1961) and Myers (1984) pecking order of financing preferences, is consistent with tax, transaction costs, and adverse selection arguments that imply that internally generated equity is less costly than equity capital that is raised…”
Testing trade-off and pecking order theories financing SMEs (2008, background): “The last option is new capital, which is the source of financing with the highest information costs ( Donaldson 1961; Myers and Majluf 1984).”
Effects of Capital Structure on Firmâ€™s Performance: Empirical Study of Manufacturing Companies in Nigeria (2014, background): “The pecking order theory of capital structure as introduced by Donaldson (1961) is among the most influential theories of corporate leverage.”