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Issue 5(1), October 2010 -- Paper Abstracts
Girard  (p. 9-22)
Cooper (p. 23-32)
Kunz-Osborne (p. 33-41)
Coulmas-Law (p.42-46)
Stasio (p. 47-56)
Albert-Valette-Florence (p.57-63)
Zhang-Rauch (p. 64-70)
Alam-Yasin (p. 71-78)
Mattare-Monahan-Shah (p. 79-94)
Nonis-Hudson-Hunt (p. 95-106)



JOURNAL OF ACCOUNTING AND FINANCE

Firm Growth and Financial Choices in Pennsylvania Firms:
An Empirical Study about the Pecking Order Theory


Author(s): Enyang Guo, Gary Leinberger

Citation: Enyang Guo, Gary Leinberger, (2012) "Firm Growth and Financial Choices in Pennsylvania Firms:
An Empirical Study about the Pecking Order Theory," Journal of Accounting and Finance, Vol. 12, Iss. 4, pp. 123 - 142

Article Type: Research paper

Publisher: North American Business Press

Abstract:

The Wall Street Journal April 28, 2009 reported market concern about sticky leverage. During the credit crunch of 2008, corporate leverage rose at a faster rate than it did at the peak of the economic boom, even as firms worked hard to reduce borrowing. It proved a significant concern for firms where deleveraging should be the top priority. This problem begs the question of how firms make financing choices in the first place. This paper uses Myers’ Pecking Order Theory to examine 250 Pennsylvania companies during the period of 1988 – 2007. Our empirical results support Myers’ Pecking Order Theory. The study provides additional empirical support for the Pecking Order Theory while avoiding potential problems of varying state-level tax and regulatory environments.