Pecking-order view (of capital structure) - The argument that external financing transaction costs, especially those associated with the problem of adverse selection, create a dynamic environment in which firms have a preference, or pecking-order of preferred sources of financing, when all else is equal. Internally generated funds are the most preferred, followed by new debt, debt-equity hybrids, and finally, new equity at the least preferred source.
Pecking-order view (of capital structure) : the argument that external financing transaction costs, especially those associated with the problem of adverse selection, create a dynamic environment in which firms have a preference, or pecking-order of preferred sources of financing, when all else is equal. internally generated funds are the most preferred, followed by new debt, debt-equity hybrids, and finally, new equity at the least preferred source.
Pecking-order view (of capital structure)