Trade-Off and Pecking Order Theories of Debt

By Murray Z. Frank, Vidhan K. Goyal. 2007

938 citations recorded by the source corpus.

Subfields: Accounting, Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/e05f12544c3ca1aa47cf2c61ac4c56e4abeb7b03

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. Yongcheol Shin
2. Ulrike Malmendier
3. Geoffrey A. Tate
4. Michael R. Roberts
5. Vi Dang
6. Mark T. Leary
7. Tom Vanacker
8. Min-Joo Kim

In Economics and Econometrics

1. Tom Vanacker
2. Yongcheol Shin
3. Vi Dang
4. Mark T. Leary
5. Min-Joo Kim
6. V. Dang
7. Sophie Manigart
8. J. V. da Silva

In Finance

1. Ulrike Malmendier
2. Yongcheol Shin
3. Geoffrey A. Tate
4. Michael R. Roberts
5. Vi Dang
6. Min-Joo Kim
7. V. Dang
8. Mark T. Leary

Citations in the corpus

• The Pecking Order, Debt Capacity, and Information Asymmetry (2010, positive): “Finally, in column 7, we specify αCit and α D′ it to be functions of industry and year fixed effects, as well as a broader list of firm characteristics identified by the empirical literature as being important determinants of corporate capital structure (Frank and Goyal, 2007).”
• Uncertainty Shocks, Asset Supply and Pricing over the Business Cycle (2018, neutral): “See Frank and Goyal (2011) and Graham and Leary (2011) for surveys.”
• Pecking order and debt capacity considerations for high-growth companies seeking financing (2010, background): “wide use of outside equity financing despite its high cost (Fama and French 2005; Frank and Goyal 2005 ).”
• The impact of firm and industry characteristics on small firms’ capital structure (2010, background): “While many studies tackle the capital structure decision, most empirical work deals with large publicly listed firms which often have several types of securities traded (see Fama and French, 2002 or Frank and Goyal, 2008 for a recent review).”
• Do Peer Firms Affect Corporate Financial Policy (2014, neutral): “More recently, Frank and Goyal (2007) find that industry median leverage has the single most explanatory power for firm leverage among the 25 firm characteristics and macroeconomic variables they consider.”
• Testing trade-off and pecking order theories financing SMEs (2008, background): “Frank and Goyal (2005) break Myers’s earlier notion of trade-off into two parts: (i) the static tradeoff theory (the firm’s leverage is determined by a single period trade-off) and (ii) target-adjustment behaviour (the firm’s leverage gradually reverts to the target over time).”
• Corporate Financial Policies with Overconfident Managers (2005, positive): “Comparing this condition to condition (11) in Proposition 1, we see that the overconfident CEO will be more likely to use debt if and only if the term in { } is positive.”
• In Search of Robust Methods for Dynamic Panel Data Models in Empirical Corporate Finance (2015, positive): “As suggested by Frank and Goyal (2009), we focus on the five most important determinants of leverage, namely profitability (EBIT), the market-to-book ratio (MB), firm size (TA), tangibility (FA), and the industry median of leverage (IND). Following previous capital structure research (Titman and Wes”
• Family Control and Financing Decisions (2011, neutral): “In their survey of trade-off and pecking order theories of debt, Frank and Goyal (2008) document that small firms actively use equity financing, while large firms rely more on corporate bonds.”