Numerous empirical studies in the finance field have tested many theories for firms¡¦ capital structure. Under the assumption of asymmetric information, the pecking order theory proposes the financing order for farm businesses, which implies a negative relationship between their cash flow and...

This study proposed a theoretical framework for analyzing farm capital structure choice. The theoretical model recognizes that the costs of debt are endogenously determined which in turn reflect the degree of credit constraint faced by individual borrowers. Based on the proposed model, we...

This study derives a demand model for small firm finances using a portfolio allocation theory. The assumption of the manager versus the firm as the primary financial decision-maker of small firm is tested. We employ empirical techniques that allow for indirect utility estimation in a...

This study proposed a seemingly unrelated regression model to investigate the predicting capability of the structure model and test the capital structure theories. The model considered dynamic property of the structure model and characteristics of farm records. FBFM data are used in empirical...