Hierarchy funding medium-sized enterprises- theory and practice

Beata Owczarczyk

Abstract

For many years in the literatu re IS conducted discussion on the factors that determine the structure of capital in the enterprise. In the area of these issues arose several theories to explain the capital structure in the company. One is the Pecking Order Theory, formulated by S. Myers and N. Majluf in 1984. According to this theory, companies prefer internal sources of financing, avoid sudden changes in the amount of dividends paid, and when profits retained are greater than their investment needs, to repay its liabilities by investing the surplus in easily marketable, short-term securities in case of insufficient level of internal funding sources in the first place take out credits or loans, only after the exhaustion of these opportunities to increase equity by raising the external flow, first in the form of debt securities and, ultimately, by issuing shares. The primary objective of the doctoral dissertation is an attempt to verify the applicability of Pecking Order Theory to explain the formation of capital structure in a selected group of Polish medium-sized enterprises
Diploma typeDoctor of Philosophy
Author Beata Owczarczyk
Beata Owczarczyk,,
-
Title in EnglishHierarchy funding medium-sized enterprises- theory and practice
Languagepl polski
Certifying UnitFaculty of Economics, Management and Tourism (EMaT)
Disciplineekonomia / nauki ekonomiczne(nauki ekonomiczne) / nauki społeczne()
Defense Date21-12-2012
End date21-12-2012
Supervisor Jacek Adamek (EMaT / DFaA)
Jacek Adamek,,
- Department of Finance and Accounting

Internal reviewers Grażyna Borys (EMaT / DFaA)
Grażyna Borys,,
- Department of Finance and Accounting
External reviewers Aurelia Bielawska
Aurelia Bielawska,,
-
Pages287
Keywords in EnglishPecking Order Theory, capital structure, sources of funding
Abstract in EnglishFor many years in the literatu re IS conducted discussion on the factors that determine the structure of capital in the enterprise. In the area of these issues arose several theories to explain the capital structure in the company. One is the Pecking Order Theory, formulated by S. Myers and N. Majluf in 1984. According to this theory, companies prefer internal sources of financing, avoid sudden changes in the amount of dividends paid, and when profits retained are greater than their investment needs, to repay its liabilities by investing the surplus in easily marketable, short-term securities in case of insufficient level of internal funding sources in the first place take out credits or loans, only after the exhaustion of these opportunities to increase equity by raising the external flow, first in the form of debt securities and, ultimately, by issuing shares. The primary objective of the doctoral dissertation is an attempt to verify the applicability of Pecking Order Theory to explain the formation of capital structure in a selected group of Polish medium-sized enterprises
KBN classificationekonomia

Get link to the record

Back