Jan Bartholdy

Do SMEs follow Pecking Order Financing?

Research output: Contribution to conferencePaperResearchpeer-review

  • Jan Bartholdy
  • Cèsario Mateus, Greenwich University London, United Kingdom
  • Dennis Olson, American University of Sharjah, United Arab Emirates
This paper tests for "pecking order" financing of small and medium size firms. The main sources and "pecking order" of financing for SMEs are equity (internally generated cash), trade credit paid on time, credit provided by institutions such as banks and leasing companies, other sources of debt and delayed payment on trade credit. The "pecking order" of financing is driven by the costs of asymmetric information (cost of gathering and analysing information) and financial distress costs. Empirical tests do not confirm that SMEs follow a pecking order.
Original languageEnglish
Publication year2010
Publication statusPublished - 2010
Event6th Finance Conference, Portuguese Finance Network (PFN 2010) - Ponta Delgada, Portugal
Duration: 1 Jul 20103 Jul 2010


Conference6th Finance Conference, Portuguese Finance Network (PFN 2010)
CityPonta Delgada

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