Do ultimate owners follow the pecking order theory?

Rodrigo Zeidan, Koresh Galil, Offer Moshe Shapir

Research output: Contribution to journalArticlepeer-review

13 Scopus citations


Previous studies that have tested the pecking order theory have been inconclusive. In this paper, we use unique survey results for private Brazilian firms in order to investigate firms’ choice of capital structure. We document that ultimate owners of privately owned firms follow the pecking order theory, even in presence of subsidized loans. We also show that whether a firm is debt constrained or unconstrained does not affect this finding.

Original languageEnglish
Pages (from-to)45-50
Number of pages6
JournalQuarterly Review of Economics and Finance
StatePublished - 1 Feb 2018


  • Capital structure
  • Pecking order
  • SME

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics


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