Purpose – The purpose of this paper is to show that different methodologies may lead to different implications about the validity of the pecking order theory. Design/methodology/approach – Using data from Greek firms as a starting-point, the paper first investigates whether they follow the...

Purpose – The purpose of this paper is to show that different methodologies may lead to different implications about the validity of the pecking order theory. Design/methodology/approach – Using data from Greek firms as a starting‐point, the paper first investigates whether they follow the...

Explains how growth in banks is constrained by equity growth and regulations on leverage; and expresses the sustainable growth rate (SCR: i.e. maximum increase in total assets which can be supported by internally generated equity capital) mathematically. Applies the model to the National Bank of...