This paper analyzes the financing behaviors of two major casino companies, Mirage Resorts, Inc., and Circus Circus Enterprises, Inc., in their recent expansion projects. It compares the two companies' financing practices with the three existing financing theories, namely the traditional trade-off theory, the pure pecking order theory, and the modified pecking order theory. It appears that the modified pecking order theory can best describe the two companies' financing behaviors.

No abstract