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Pecking order view (of capital structure) |
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Pecking order view (of capital structure)The argument that external financing transactions costs, especially those associated with the problem of adverse selection, create a dynamic environment in which firms have a preference, or pecking-order of preferred sources of financing, when all else is equal. Internally generated funds are the most preferred, followed by new debt, and debt-equity hybrids. Finally, new equity is at the least preferred source.Pecking order view (of capital structure) Similar MatchesPie model of capital structurePie model of capital structureA model of the debt-equity ratio of the firms, graphically depicted in slices of a pie that represent the value of the firm in the capital markets. Capital structureCapital structureThe components which form a company's capital :ordinary shares, preference shares, debentures and loan stock.In the US, the equivalent components are: common stock, long term debt and preferred stock. Neighborhood production structureNeighborhood production structureA structure of technology for a general equilibrium model due to Jones and Kierzkowski (1986). With an arbitrary but equal number of goods and factors, each factor produces two (different) goods, each good uses two (different) factors, in a way that yields more unambiguous results than one normally finds in high-dimension trade models without specific factors. InfrastructureInfrastructureThe facilities that must be in place in order for a country or area to function as an economy and as a state, including the capital needed for transportation, communication, and provision of water and power, and the institutions needed for security, health, and education. Structured arbitrage transactionStructured arbitrage transactionA self-funding, self-hedged series of transactions that usually use mortgage-backed securities (MBS) as the primary assets. Further SuggestionsTerm structure of interest ratesStructured note Market microstructure Structured portfolio strategy Structured debt Restructured loan Personal tax view (of capital structure) Market structure Structured settlement |
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