IDEAS home Printed from https://ideas.repec.org/a/ids/ijbexc/v33y2024i1p142-167.html
   My bibliography  Save this article

The effects of information environment on internal and external financing choices

Author

Listed:
  • Li-Kai Liao
  • Victoria S.P. Wang

Abstract

This study examines the effects of the overall information environment on the choices of internal/external funding choices and on the decisions of debt/equity financing (Myers and Majluf, 1984). The empirical findings, whether the combination of all financial deficits or its four components, support the pecking order theory in the perspective of overall information environment. However, the pecking order behaviour does not hold if firms are under financial distress. After classifying sample into good/bad information environment, the results are consistent with the full sample. No evidence supports the pecking order theory when considering the persistence of financing policy.

Suggested Citation

  • Li-Kai Liao & Victoria S.P. Wang, 2024. "The effects of information environment on internal and external financing choices," International Journal of Business Excellence, Inderscience Enterprises Ltd, vol. 33(1), pages 142-167.
    • Handle: RePEc:ids:ijbexc:v:33:y:2024:i:1:p:142-167
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=139116
    Download Restriction: Open Access
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:ijbexc:v:33:y:2024:i:1:p:142-167. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=291 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.