Relationship between the pecking order theory and firm's age: Empirical evidences from India
The present work examines the impact of age on the pecking order of deficit and surplus firms. Using empirical evidences, the results indicate that age does not have any significant impact on the pecking order of firms when they have deficits, and firms (across all groups) continue to issue large am...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Elsevier
2018-03-01
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| Series: | IIMB Management Review |
| Online Access: | http://www.sciencedirect.com/science/article/pii/S0970389618300284 |
| _version_ | 1818601139116965888 |
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| author | Vandana Bhama Pramod Kumar Jain Surendra Singh Yadav |
| author_facet | Vandana Bhama Pramod Kumar Jain Surendra Singh Yadav |
| author_sort | Vandana Bhama |
| collection | DOAJ |
| description | The present work examines the impact of age on the pecking order of deficit and surplus firms. Using empirical evidences, the results indicate that age does not have any significant impact on the pecking order of firms when they have deficits, and firms (across all groups) continue to issue large amount of debt to fill up deficit gaps. While in surplus conditions, old firms followed by middle age firms appear to redeem comparatively more debt vis-a-vis young firms. Being at growing stage, young firms prefer to retain funds more for future financing needs. Keywords: Pecking order theory, Deficit, Surplus, Debt, Equity, India |
| first_indexed | 2024-12-16T12:46:38Z |
| format | Article |
| id | doaj.art-7cdbef4a8cbd44018f9f13c5634c83b6 |
| institution | Directory Open Access Journal |
| issn | 0970-3896 |
| language | English |
| last_indexed | 2024-12-16T12:46:38Z |
| publishDate | 2018-03-01 |
| publisher | Elsevier |
| record_format | Article |
| series | IIMB Management Review |
| spelling | doaj.art-7cdbef4a8cbd44018f9f13c5634c83b62022-12-21T22:31:17ZengElsevierIIMB Management Review0970-38962018-03-01301104114Relationship between the pecking order theory and firm's age: Empirical evidences from IndiaVandana Bhama0Pramod Kumar Jain1Surendra Singh Yadav2Fortune Institute of International Business, Vasant Vihar, Delhi, India; Corresponding author. Tel.: +9910359955.Department of Management Studies, Indian Institute of Technology Delhi, Delhi, IndiaDepartment of Management Studies, Indian Institute of Technology Delhi, Delhi, IndiaThe present work examines the impact of age on the pecking order of deficit and surplus firms. Using empirical evidences, the results indicate that age does not have any significant impact on the pecking order of firms when they have deficits, and firms (across all groups) continue to issue large amount of debt to fill up deficit gaps. While in surplus conditions, old firms followed by middle age firms appear to redeem comparatively more debt vis-a-vis young firms. Being at growing stage, young firms prefer to retain funds more for future financing needs. Keywords: Pecking order theory, Deficit, Surplus, Debt, Equity, Indiahttp://www.sciencedirect.com/science/article/pii/S0970389618300284 |
| spellingShingle | Vandana Bhama Pramod Kumar Jain Surendra Singh Yadav Relationship between the pecking order theory and firm's age: Empirical evidences from India IIMB Management Review |
| title | Relationship between the pecking order theory and firm's age: Empirical evidences from India |
| title_full | Relationship between the pecking order theory and firm's age: Empirical evidences from India |
| title_fullStr | Relationship between the pecking order theory and firm's age: Empirical evidences from India |
| title_full_unstemmed | Relationship between the pecking order theory and firm's age: Empirical evidences from India |
| title_short | Relationship between the pecking order theory and firm's age: Empirical evidences from India |
| title_sort | relationship between the pecking order theory and firm s age empirical evidences from india |
| url | http://www.sciencedirect.com/science/article/pii/S0970389618300284 |
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