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A Test Of The Pecking Order Theory: An Empirical Study Of Institutional And Insider Ownership Identities On The Swedish Market

Sasu Dwamera, Adrian LU and Asafo-Adjei, Agyenim Boateng LU (2018) BUSN79 20181
Department of Business Administration
Abstract
The paper investigates the financing behavior of firms listed on the Stockholm Stock Exchange (SSE) main markets using the pecking order theory. The study also examines the influence of institutional and insider ownership identities on the financing decisions of the firms. Examining a sample of 107 firms from 2009-2017, we found the pecking order theory of corporate financing consistent with firms listed on the SSE main market. It was observed that tax shield has positive influence on firms' leverage. However, we found no significant evidence of the influence of both institutional and insider ownership identities in this study. This observed relationship raises the question of whether institutional owners optimally perform the disciplinary... (More)
The paper investigates the financing behavior of firms listed on the Stockholm Stock Exchange (SSE) main markets using the pecking order theory. The study also examines the influence of institutional and insider ownership identities on the financing decisions of the firms. Examining a sample of 107 firms from 2009-2017, we found the pecking order theory of corporate financing consistent with firms listed on the SSE main market. It was observed that tax shield has positive influence on firms' leverage. However, we found no significant evidence of the influence of both institutional and insider ownership identities in this study. This observed relationship raises the question of whether institutional owners optimally perform the disciplinary and monitoring roles. (Less)
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author
Sasu Dwamera, Adrian LU and Asafo-Adjei, Agyenim Boateng LU
supervisor
organization
course
BUSN79 20181
year
type
H1 - Master's Degree (One Year)
subject
keywords
Capital structure, Pecking order theory, Institutional ownership identity, Insider ownership identity, Financing decision.
language
English
id
8954763
date added to LUP
2018-07-10 14:56:37
date last changed
2018-07-10 14:56:37
@misc{8954763,
  abstract     = {The paper investigates the financing behavior of firms listed on the Stockholm Stock Exchange (SSE) main markets using the pecking order theory. The study also examines the influence of institutional and insider ownership identities on the financing decisions of the firms. Examining a sample of 107 firms from 2009-2017, we found the pecking order theory of corporate financing consistent with firms listed on the SSE main market. It was observed that tax shield has positive influence on firms' leverage. However, we found no significant evidence of the influence of both institutional and insider ownership identities in this study. This observed relationship raises the question of whether institutional owners optimally perform the disciplinary and monitoring roles.},
  author       = {Sasu Dwamera, Adrian and Asafo-Adjei, Agyenim Boateng},
  keyword      = {Capital structure,Pecking order theory,Institutional ownership identity,Insider ownership identity,Financing decision.},
  language     = {eng},
  note         = {Student Paper},
  title        = {A Test Of The Pecking Order Theory: An Empirical Study Of Institutional And Insider Ownership Identities On The Swedish Market},
  year         = {2018},
}