Fama, Eugene F.; French, Kenneth R. - In: Critical Finance Review 1 (2012) 1, pp. 59-101
We examine three pairs of cross-section regressions that test predictions of the tradeoff model, the pecking order model, and models that center on market conditions. The regressions examine (i) the split of new outside financing between share issues and debt, (ii) the split of new debt...