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Un Test De La Théorie Du Financement Hiérarchisé Sur Données De Panel Françaises

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  • Eric Molay

    (CRIFP - Centre de Recherche en Ingénierie Financière et Finances Publiques - UNS - Université Nice Sophia Antipolis (1965 - 2019))

Abstract

The French firms at the Paris stock exchange seem to adopt a financing hierarchy by privileging internal resources to external resources. When using external financing, debt is preferred to eq-uity. The validation of the pecking order theory is based on the existence of asymmetric informa-tion involving adverse selection problems. This study confirms the role of asymmetric informa-tion on the choice of financing of the French firms. The firms most sensitive to asymmetric in-formation prefer debt financing. On the contrary, the firms less affected by adverse selection problems prefer equity financing.

Suggested Citation

  • Eric Molay, 2006. "Un Test De La Théorie Du Financement Hiérarchisé Sur Données De Panel Françaises," Post-Print halshs-00515707, HAL.
    • Handle: RePEc:hal:journl:halshs-00515707
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00515707
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