, thereby distinguishinginternal finance and three types of external finance: bank borrowing, bondissues and share issues. First …, we estimate a multinomial logit model whichconfirms several predictions of both the static trade-off theory and … thepecking-order theory as to the determinants of financing choices. Next, weuse ordered probit models to determine which …

penalize poorly performing entrepreneurs by terminating their projects. Based on this tradeoff we develop a theory of financing …

This article proposes a theory of corporate transparency and its determinants. We show that under imperfect product … preferred by equity holders. The theory predicts a clustering of firm characteristics that emerge when capital markets are not … sufficiently investor friendly to allow arm's-length monitoring: bank dominance, opaqueness, uncertainty about assets in place, low …