Is there a pecking order? Evidence from a panel of IPO firms

The role of life cycle on the firm’s capital structure = El papel del ciclo de vida en la estructura de capital de la empresa

“…For instance, new entrants in financial markets can issue equity as they grow, but they have the opportunity to issue bonds instead, and they can also obtain bank debt in good conditions. Our non-significant coefficient for size during introduction is consistent with Helwege and Liang's (1996) results for IPO firms.…”

“…The inverse relation between leverage and profitability (Fama and French, 2002) supports the view that debt is only issued when retained income is insufficient to finance investment. Helwege and Liang (1996) find that the least risky firms are the most likely to issue public bonds, but those firms that issue equity are not riskier than firms that obtain bank debt. Frank and Goyal (2003) and Lemmon and Zender (2010) confirm that the greatest support for the pecking order is found among larger and mature firms 4 , while frequent issues by small high-growth firms are consistent with debt capacity concerns.…”

Capital structure in new technology-based firms: Evidence from the Irish software sector

“…Thus debt will be preferred to outside equity, and new equity will be issued only as a last resort. The POH has received considerable empirical support at the level of the corporation (Titman and Wessels, 1988;Shyam-Sunder and Myers, 1999), although some recent studies have found that new equity is becoming a more popular source of finance amongst listed firms (Helwege andLiang, 1996, andFrank andGoyal, 2003).…”

Market states, expectations, sentiment and momentum: How naive are investors?

“…market than those announced in a cold market" (Rosen, 2006. Similarly, there is evidence of over-optimism in hot IPO markets (see, for example, Helwege and Liang, 1996) and Holmes et al (2013) find that herding is more evident during periods when returns are low, compared to periods when returns are high.…”