-
Journal menu
- General information
- Editorial Board and External Reviewers
- Journal Policies
- Publication Ethics and Malpractice Statement
- Instructions for authors
- Paper reviewing
- Article processing charge
- Feedback from stakeholders
- Journal’s Open Access statement
- Order hard copies of the journal
- 50 most cited papers in the journal
THE INTERNATIONAL EVIDENCE OF PECKING ORDER AND TRADE-OFF PREDICTIONS
Download This Article
Nuttawat Visaltanachoti 
, Robin Luo, Cai Wei
Abstract
This paper investigates the pecking order and trade-off hypotheses of corporate financing decisions for a sample of 74 countries from 1993 to 2003. Overall, the results confirm predictions shared by the trade-off and pecking order models in that the payout ratio is positively related to profitability and negatively related to investment opportunities, target leverage and volatility. The present study also provides favorable evidence to the pecking order model in that more profitable firms are less levered. Firms with more investments have lower long-term dividend payouts, but dividends do not vary to accommodate short-term variation in investment.
Keywords: Trade-Off, Pecking-Order, Target Dividend, Leverage
How to cite this paper: Visaltanachoti, N., Luo, R., Wei, C. (2010). The international evidence of pecking order and trade-off predictions. Corporate Ownership & Control, 7(4-1), 183-196. https://doi.org/10.22495/cocv7i4c1p3
