Trade-off vs. pecking order theory: evidence from Greek firms in a period of debt crisis

Chatzinas, Georgios; Papadopoulos, Simeon

doi:10.1504/ijbaaf.2018.10011617

Cited by 6 publications

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“…The above research hypotheses aim at accepting or rejecting the already drawn implications by Chatzinas & Papadopoulos (2018). The present study aims at confirming the implication that the reinforcement of the power of trade -off theory may be attributed to the fact that the tax deductibility effect is larger than the bankruptcy costs effect.…”

Section: H2mentioning

confidence: 56%

“…Vijayakumar (2011) using a sample of 26 firms of Indian automobile sector investigated the adjustability of the two theories and concluded that pecking order paradigm overbears the trade -off hypothesis during the period 1996-2009. On the other hand, the research of Rossi et al (2015) resulted that trade -off theory is much more appropriate than pecking order hypothesis in explaining the managers' decisions on capital structure using a sample of 82 Italian firms in the Agro-food industry for a period beginning in 2007 and ending in 2011, while Wang's (2013) Chatzinas and Papadopoulos (2018) used data for 142 non-financial listed in Athens Stock Exchange firms and conclude that both theories can explain the capital structure's behavior depending on the general economic conditions. Banga and Gupta (2017) examined the capital structure of small and medium sized firms in India for a period from 2007 to 2012.…”

Section: Literature Reviewmentioning

confidence: 99%

“…This increase is expected to raise the tax benefits leading firms to increase the debt level in their optimal capital structure. As a result, the final effect on firms' capital structure of such an economic environment depends on whether the tax effect or the bankruptcy costs effect is greater (Chatzinas & Papadopoulos, 2018). On the other hand, according to pecking order theory, the decrease of the available cash flows that come from internal sources because of the reduction of sales and profits makes the firms seek increased external funds that lead to an increase of debt in their capital structure (Cetorelli & Goldberg, 2011;Hassan & Samour, 2015).…”

Section: Literature Reviewmentioning

confidence: 99%

“…Finally, the Greek firms' capital structure behavior is investigated by many researchers, the majority of whom agree that the pecking order hypothesis can better explain the financing decisions of firms' managers ( Daskalakis et al, 2003). However, some other scholars conclude that the Greek firms define a long-term optimal capital structure, a conclusion that is in accordance to trade -off theory or that none of the two examined theories can explain adequately their capital structure behavior (Vasiliou et al, 2006;Vasilioy & Daskalakis, 2005;Chatzinas & Papadopoulos, 2018).…”

Section: Presentation Of Countries: Environment and Firms' Capital Stmentioning

confidence: 99%

“…In this study, this contradiction is taken into consideration based on the fact that there are researchers claiming that both theories can partially explain the firms' capital structure changes and that the two theories are not mutually exclusive (Chatzinas & Papadopoulos, 2018;Serrasqueiro & Caetano, 2015;Rahman and Arifuzzaman, 2014;Sogorb-Mira & Lopez-Gracia, 2003;Zhang & Kanazaki, 2007). Moreover, there are researchers who found that the managers' decisions on the firms' capital structure depend on the economic conditions of each country (Chatzinas & Papadopoulos, 2018;Banerjee, 2017). Based on this last proposition, the originality of the present study comes from the fact that it aims at investigating the explanatory power of trade -off and pecking order theories in countries with significantly changing economic conditions.…”

Section: Introductionmentioning

confidence: 99%

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2018

Eur. j. econ. bus. stud.

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Designing and adapting organizations to secure viability and increase performance is a challenge. Research models often fail to integrate corporate social responsibility (CSR) aspects in the concept development and its implementation. Therefore, the aim of this study is to propose a holistic approach how organizations can be designed, changed and managed considering its implications to service management under a CSR approach. Hereby the Viable System Model was applied. Its structure can be applied to any kind of structured organization and for its management with goals to be achieved in modern society; however focus of the research is the cluster of charity organizations. Goal of the developed model is to be able to react to all potential organizational environments by taking decisions correctly and in the right moment based on the needed information reducing service lead times and manpower allocation as well as increasing the service level. To ensure this, service management tasks were assigned and standardized communication channels were defined. In conclusion this proposed approach empowers organizations to have internal mechanisms to secure viability by pursuing the goal of a high performance CSR approach. Service management tasks according to planning horizon levels Definition of recursion levels within a service organizationService management tasks and their classification to the VSM systems Identification of the needed information flows between organization and service recursion levels and within the service management level Applying the model for charity organizations After having described the methodology, the VSM as a reference model is compared with other approaches. As described ISSN 2411-9571 (Print) ISSN 2411

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Section: H2mentioning

confidence: 56%

Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Section: Presentation Of Countries: Environment and Firms' Capital Stmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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2018

Eur. j. econ. bus. stud.

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Firms’ performance during the COVID-19 outbreak: international evidence from 13 countries

Golubeva

2021

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Purpose The purpose of this paper is to explore the impact of firm-, finance- and country-specific indicators to the performance of companies under the COVID-19 outbreak. Design/methodology/approach The study uses a regression performance model for enterprises during the COVID-19 crisis. The investigation is based upon a data set of 5,730 firms from 13 countries collected by the World Bank through enterprise surveys. The author combined the analysis of traditional performance measurements with the testing of relatively novel variables. Findings This study confirms the significance of multiple factors for company performance: sector, size, participation in exports and market demand for firms’ products. Robust financing solutions during the coronavirus pandemic period include equity contributions, followed by firms’ cash balances and debt. Support by a government, however, has not yet been confirmed as a significant source of finance. This paper also suggests the importance of country-specific factors for the performance of enterprises, including the level of economic development and the corporate governance infrastructure. Practical implications The research outcomes might assist regulatory bodies, policymakers and companies in their formulation of public and corporate governance strategies concerning future emergency preparedness and responses. Originality/value This paper is among the first empirical studies in the management realm that addresses the impact of COVID-19 on company performance, with cross-national empirical data.

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Influência De Aspectos Regionais Na Estrutura De Capital De Empresas Brasileiras Atendidas Por Bancos Públicos

et al. 2022

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Objetivo: Identificar qual a influência de aspectos regionais na estrutura de capital de empresas brasileiras habilitadas ao atendimento de bancos públicos. Método: Partindo do estudo de Meslier et al. (2020), foram extraídos os dados da pesquisa a partir das demonstrações contábeis-financeiras e de valor de mercado da base de dados Economática®, no período de 2010 a 2020 das empresas brasileiras (excetuando-se o setor financeiro), e propostos modelos de regressão linear com dados em painel. Resultados e Discussões: Os resultados apontam que estar em regiões em que mais de um BP atua não implica em aumento do endividamento das empresas, exceto em períodos de crise. Por outro lado, conforme a Teoria Pecking Order, a saúde financeira exerceu efeito relevante na estrutura de capital das empresas, especificamente rentabilidade e capacidade de pagar juros. Contribuições: O estudo analisa a estrutura de capital das empresas com proxy de regionalidade, não apenas no aspecto geográfico, elencando seus efeitos no endividamento e custo da dívida. Os Bancos Públicos têm grande participação no cenário do crédito brasileiro e, acessá-los, supera a questão de regionalidade implicando em estímulo na saúde financeira das empresas, dada a preferência por recursos internos. A pesquisa contemplou a localização geográfica da matriz das empresas analisadas, criando a limitação do acesso aos Bancos Públicos por parte das filiais. Pesquisas futuras mais regionalizadas podem abranger a atuação dos bancos privados e aprofundar no efetivo relacionamento das empresas com os bancos regionais.

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Trade-off vs. pecking order theory: evidence from Greek firms in a period of debt crisis

Cited by 6 publications

References 0 publications

Untitled

Untitled

Firms’ performance during the COVID-19 outbreak: international evidence from 13 countries

Influência De Aspectos Regionais Na Estrutura De Capital De Empresas Brasileiras Atendidas Por Bancos Públicos

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