Meaning PECKING-ORDER VIEW (OF CAPITAL STRUCTURE): The argument that external financing transactions costs, especially those associated with the problem of adverse selection, create a dynamic environment in which firms have a preference, or pecking-order of preferred sources of financing, when all else is equal. Internally generated funds are the most preferred, followed by new debt, and debt-equity hybrids. Finally, new equity is at the least preferred source
More terms such as Pecking-order view (of capital structure) in Dictionary P.
- Definition Perfected First Lien:
- Examples A first attachment on an asset that is duly recorded with the relevant government body so that the lender will be able to act on it should the borrower default pecking-order view (of capital structure) definition.
- Definition Planned Financing Program:
- Examples Budgeted or projected ways need for reasons or to obtain short-term and long-term financing as outlined in the corporate financial plan pecking-order view (of capital structure) explain.
- Definition Personal Income:
- Examples Total income received from all sources, including wages, salaries, or rents, and the like pecking-order view (of capital structure) what is.
- Definition Progress Payments:
- Examples Periodic payments to a supplier, contractor, or subcontractor for work as it is completed as desired, in order to reduce working capital requirements pecking-order view (of capital structure) meaning.
- Definition Profit:
- Examples Revenue minus cost. The amount one makes on a transaction pecking-order view (of capital structure) abbreviation.
