In the theory of firm's capital structure and financing decisions, the Pecking Order Theory or Pecking Order Model was developed by Stewart C. Myers and Nicolas Majluf in 1984. It states that companies prioritize their sources of financing according to the law of least effort, or of least resistance, preferring to raise equity as a financing means of last resort.

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  • In the theory of firm's capital structure and financing decisions, the Pecking Order Theory or Pecking Order Model was developed by Stewart C. Myers and Nicolas Majluf in 1984. It states that companies prioritize their sources of financing according to the law of least effort, or of least resistance, preferring to raise equity as a financing means of last resort. Hence, internal funds are used first, and when that is depleted, debt is issued, and when it is not sensible to issue any more debt, equity is issued. This theory maintains that businesses adhere to a hierarchy of financing sources and prefer internal financing when available, and debt is preferred over equity if external financing is required.
  • Hakkeordensteorien er en teori innen kapitalstruktur og kapitalfinansiering, som ble utviklet av Stewart C. Myers i 1984. Den presiserer at selskaper prioriterer finansieringskilder utifra loven om minst anstrengelse, eller minste motstand. Intern finansiering foretrekkes før ekstern når dette er tilgjengelig, og innen sistnevnte foretrekkes gjeld før aksjekapital. Ifølge teorien vil utstedelse av aksjer dermed være en «siste utvei».
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  • In the theory of firm's capital structure and financing decisions, the Pecking Order Theory or Pecking Order Model was developed by Stewart C. Myers and Nicolas Majluf in 1984. It states that companies prioritize their sources of financing according to the law of least effort, or of least resistance, preferring to raise equity as a financing means of last resort.
  • Hakkeordensteorien er en teori innen kapitalstruktur og kapitalfinansiering, som ble utviklet av Stewart C. Myers i 1984. Den presiserer at selskaper prioriterer finansieringskilder utifra loven om minst anstrengelse, eller minste motstand. Intern finansiering foretrekkes før ekstern når dette er tilgjengelig, og innen sistnevnte foretrekkes gjeld før aksjekapital. Ifølge teorien vil utstedelse av aksjer dermed være en «siste utvei».
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  • Pecking Order Theory
  • Hakkeordensteorien
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