TERMIUM Plus®

The Government of Canada’s terminology and linguistic data bank.

PECKING ORDER PARADIGM [1 record]

Record 1 2005-02-22

English

Subject field(s)
  • Management Theory
CONT

Myers and Majluf (1984) argue that when managers know more about the future prospects of the firm than outside investors, managers may convey positive news to investors by means of the financing method chosen, with internal financing being the highest in the pecking order, riskless debt the next highest, followed by equity issues (the so-called "pecking order paradigm").

Key term(s)
  • peck order

French

Domaine(s)
  • Théories de la gestion

Spanish

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