order relation

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order relation

[′ȯrd·ər ri‚lā·shən]
(mathematics)
References in periodicals archive ?
According to the Pecking Order Theory, capital structure and in particular the use of debt is driven by adverse selection which stipulates that the decision makers (the managers) possess private information compared to owners (shareholders).
The Pecking Order theory of corporate finance also explains that firms first prefer to utilize their internally generated funds before floating shares in the capital market.
The Pecking Order theory as modified by Myers and Majluf (1984) argues that firms place their sources of financing projects in their order of priority; according to their cost implications, scaling from internal financing to equity, with the latter being seen as a financing means of last resort.
Some studies highlight the importance of the pecking order theory and others show the relevance of the trade-off theory.
Segundo eles, esta proposicao se distingue da Pecking Order Theory por combinar a escolha de estrutura de capital da empresa com sua politica de disclosure voluntario, uma vez que Myers e Majluf (1984) nao fazem referencia a este tipo de divulgacao.
The pecking order theory and agency theory suggest a negative relationship.
The negative relationship between profitability and debt is interpreted as consistent with the pecking order theory and inconsistent with the trade-off theory.
Pecking order theory (henceforth POT) was built on the empirical findings of Donaldson (1961) and developed by Myers and Majluf (1984).
In order to test the assumptions of trade-off and pecking order theory and gain insight in companies' financial decisions, their capital structure has to be estimated depending on various determinants.
Many theorists gave theories and ideas to answer the questions like Modigliani and Miller Theory (1958) on capital structure, Trade-off Theory which discuss the debt advantages against debt cost and Pecking Order Theory has been studied.
This analysis is grounded on agency theory and pecking order theory.