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Debt or equity? An empirical study of security issues by Dutch companies Author info | Abstract | Publisher info | Download info | Related research | Statistics L. de Haan
J. Hinloopen
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We consider empirically the incremental financing decisions for a sample of 153 AEX-quoted companies during the years 1984 through 1997. First, we estimate a binomial logit model for the choice between internal and external finance. Second, we estimate a multinomial logit model for the choice between three types of external finance: private loans, bonds and shares. The results provide evidence for the pecking order theory. The issuance behaviour appears not to be consistent with long-term capital structure targets.
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Paper provided by Netherlands Central Bank, Research Department in its series WO Research Memoranda (discontinued) with number
577.
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Date of creation: 1999Date of revision:
Handle: RePEc:dnb:wormem:577Contact details of provider: Postal: Postbus 98, 1000 AB Amsterdam Web page: http://www.dnb.nl/en/ More information through EDIRC
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Keywords: Corporate finance ; discrete choice models ; Find related papers by JEL classification: G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Capital and Ownership Structure
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.:
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Bell Journal of Economics ,
The RAND Corporation, vol. 8(1), pages 23-40, Spring.
[Downloadable!] (restricted)
Myers, Stewart C. & Majluf, Nicolás S., 1945-, 1984.
"Corporate financing and investment decisions when firms have information that investors do not have ,"
Working papers
1523-84., Massachusetts Institute of Technology (MIT), Sloan School of Management.
[Downloadable!]
Lucas, Deborah J & McDonald, Robert L, 1990.
" Equity Issues and Stock Price Dynamics ,"
Journal of Finance ,
American Finance Association, vol. 45(4), pages 1019-43, September.
[Downloadable!] (restricted)
Other versions: Stewart C. Myers & Nicholas S. Majluf, 1984.
"Corporate Financing and Investment Decisions When Firms Have InformationThat Investors Do Not Have ,"
NBER Working Papers
1396, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Myers, Stewart C. & Majluf, Nicholas S., 1984.
"Corporate financing and investment decisions when firms have information that investors do not have ,"
Journal of Financial Economics ,
Elsevier, vol. 13(2), pages 187-221, June.
[Downloadable!] (restricted)
Myers, Stewart C, 1984.
" The Capital Structure Puzzle ,"
Journal of Finance ,
American Finance Association, vol. 39(3), pages 575-92, July.
[Downloadable!] (restricted)
Jong, A. de & Veld, C., 1998.
"An empirical analysis of incremental capital structure decisions under managerial entrenchment ,"
Discussion Paper
83, Tilburg University, Center for Economic Research.
[Downloadable!]
Other versions: Shyam-Sunder, Lakshmi & C. Myers, Stewart, 1999.
"Testing static tradeoff against pecking order models of capital structure1 ,"
Journal of Financial Economics ,
Elsevier, vol. 51(2), pages 219-244, February.
[Downloadable!] (restricted)
DeAngelo, Harry & Masulis, Ronald W., 1980.
"Optimal capital structure under corporate and personal taxation ,"
Journal of Financial Economics ,
Elsevier, vol. 8(1), pages 3-29, March.
[Downloadable!] (restricted)
Leland, Hayne E & Pyle, David H, 1977.
"Informational Asymmetries, Financial Structure, and Financial Intermediation ,"
Journal of Finance ,
American Finance Association, vol. 32(2), pages 371-87, May.
[Downloadable!] (restricted)
Other versions: Fischer, Edwin O & Heinkel, Robert & Zechner, Josef, 1989.
" Dynamic Capital Structure Choice: Theory and Tests ,"
Journal of Finance ,
American Finance Association, vol. 44(1), pages 19-40, March.
[Downloadable!] (restricted)
Myers, Stewart C., 1984.
"Capital structure puzzle ,"
Working papers
1548-84., Massachusetts Institute of Technology (MIT), Sloan School of Management.
[Downloadable!]
Marsh, Paul, 1982.
" The Choice between Equity and Debt: An Empirical Study ,"
Journal of Finance ,
American Finance Association, vol. 37(1), pages 121-44, March.
[Downloadable!] (restricted)
Masulis, Ronald W. & Korwar, Ashok N., 1986.
"Seasoned equity offerings : An empirical investigation ,"
Journal of Financial Economics ,
Elsevier, vol. 15(1-2), pages 91-118.
[Downloadable!] (restricted)
Stewart C. Myers, 1984.
"Capital Structure Puzzle ,"
NBER Working Papers
1393, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Myers, Stewart C., 1977.
"Determinants of corporate borrowing ,"
Journal of Financial Economics ,
Elsevier, vol. 5(2), pages 147-175, November.
[Downloadable!] (restricted)
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references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
Leo de Haan & Jeroen Hinloopen, 2002.
"Ordering the Preference Hierarchies for Internal Finance, Bank Loans, Bond and Share Issues ,"
Tinbergen Institute Discussion Papers
02-072/2, Tinbergen Institute.
[Downloadable!]
Bruinshoofd,W.Allard & Letterie,Wilko A., 2001.
"Comovement of Sales, Retention Practice and Financing Constraints in Dutch Manufacturing ,"
Research Memoranda
001, Maastricht : METEOR, Maastricht Research School of Economics of Technology and Organization.
[Downloadable!]
Kabir, Rezaul, 2003.
"Corporate Financing in The Netherlands: Some Empirical Evidence ,"
EIFC - Technology and Finance Working Papers
32, United Nations University, Institute for New Technologies.
[Downloadable!]
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