Pecking order theory: A comparative test and insight analysis on its occurrence in the Philippine and Indonesian listed non-financial firms for the period 2005-2009
Date of Publication
2011
Document Type
Bachelor's Thesis
Degree Name
Bachelor of Science in Commerce Major in Management of Financial Institutions
Subject Categories
Finance and Financial Management
College
Ramon V. Del Rosario College of Business
Department/Unit
Financial Management
Thesis Adviser
Joseph Vincent David
Defense Panel Chair
Clive Manuel Wee Sit
Defense Panel Member
Vivian Eleazar
Neriza Delfino
Abstract/Summary
Pecking order theory states that there is a hierarchy in the financing choice of a firm, that being, internal financing, debt, then equity. This study regress cash dividends, cash used in investing activities, change in working capital, and net operating cash flow against change in noncurrent liabilities. The study aims to measure and compare the degree of occurrence of Pecking order theory between Philippines and Indonesia and give insights regarding the rationality or irrationality of listed firms financing behavior. Results show that Indonesian listed firms follow the Pecking order theory more closely than the Philippines. The financial sector is the best model that measures Pecking order theory in the Philippines, whereas in Indonesia it is the mining sector. Data utilized are from publicly listed non-financial firms in both Philippines and Indonesia. Specific financial data is mainly sourced from OSIRIS database, dated 2005 to 2009.
Abstract Format
html
Language
English
Format
Accession Number
TU17219
Shelf Location
Archives, The Learning Commons, 12F, Henry Sy Sr. Hall
Physical Description
119 leaves : illustrations (some color)
Keywords
Finance--Philippines; Debt--Philippines; Equity--Philippines; Finance--Indonesia; Debt--Indonesia; Equity--Indonesia
Recommended Citation
Chua, J., Ouyang, Y., Shi, J., & Xu, X. (2011). Pecking order theory: A comparative test and insight analysis on its occurrence in the Philippine and Indonesian listed non-financial firms for the period 2005-2009. Retrieved from https://animorepository.dlsu.edu.ph/etd_bachelors/18520