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1、本科毕业论文（设计）外 文 翻 译原文：原文：Financing Preferences of Spanish Firms: Evidence on the Pecking Order TheoryThis paper analyses some of the empirical implications of the pecking order theory in the Spanish market using a panel data analysis of 1,566 firms over 19942000. The results show that the pecking orde
2、r theory holds for most subsamples analyzed, particularly for the small and medium-sized enterprises and for the high-growth and highly leveraged companies. It is also shown that both the more and the less leveraged firms tend to converge towards more balanced capital structures. Finally, we observe
3、 that firms finance their funds flow deficits with long term debt.A prime contribution on information asymmetry in capital structure theory is the Myers and Majluf (1984) model. Myers and Majluf observe that the empirical evidence is not consistent with a financial policy that is determined by a tra
4、de-off of the advantages and disadvantages of market imperfections, mainly taxes, costs of financial distress, and agency costs. Rather, companies financial policies seem to be better explained by the behaviour described by Donaldson (1961).He establishes a hierarchy described by company preference
5、for internal funds over external funds; in the case of external funds, a company prefers debt first, then hybrid instruments like convertible bonds, and finally equity issues. This hierarchy, broadly characterized as pecking order theory, indicates that companies do not make financing decisions with
6、 the aim of achieving optimal leverage.Although they tend to be taken as the same thing, the pecking order theory and the Myers and Majluf (1984) model are not strictly speaking the same. The pecking order theory is merely a description of companies financing policy, while the Myers and Majluf work
7、represents the first model that attempts to describe this behaviour from a theoretical point of view, based on the presence of information asymmetry. Moreover, the Myers and Majluf (1984)model assumes listed companies and markets where equity is issued through firm commitments, such as the American
8、market, not for markets where the predominant flotation method is rights offerings, such as Spain and most other countries. The aim of this paper is to provide evidence on the pecking order theory in the Spanish market. The analysis takes two directions. First, we examine the evolution of the three
9、largest accounting sources of funding for a companyretained earnings, equity issues and debtusing a model based on Watson and Wilson (2002).Second, we study the role of long-term debt in making up financing deficits, following the flow of funds deficit equation of Shyam-Sunder and Myers(1999).There
10、are several features which distinguish the Spanish financial system from the American one. Probably the main difference affecting the pecking order is the flotation method in equity issues. Equity securities are issued in a wide variety of ways, mainly firm commitments underwritten offers and rights
11、 issues. The relative importance of these methods depends on the issuing firms country. In the United States rights offerings have declined in frequency, having virtually disappeared by 1980.In Spain, rights prevail. This difference may play an important role in the hierarchy described by the peckin
12、g order theory. In addition: (a)debt financing is primarily raised privately in Spanish firms, thus banks play a very important role; and(b)the Spanish capital market is less developed than the American securities market, having lower capitalization and smaller transaction volumes. Although several
13、papers have already examined the capital structure of Spanish firms, most of them have analyzed the effect of different variables on leverage. However, there is little evidence focusing on pecking order and no study employing the Watson and Wilson (2002) methodology.The results show that small and m
14、edium-sized companies behave consistently with predictions of the pecking order theory. When we divide the sample into subsamples on the basis of growth and the level of leverage, we see that high-growth companies base their growth on retained earnings, and firms with very high and very low debt rat
15、ios tend to converge towards more moderate debt ratios. Estimation of the flow of funds deficit equation shows that fund deficits are met by the use of long-term debt. The pecking order theory describes a hierarchy in companies financial policy as follows: (1)Firms prefer to finance their investment
16、s with funds internally generated, namely, retained earnings and depreciation expenses; (2)firms base the dividend payout ratios on the future investment opportunity set and their expected cash flows; (3)payout ratios tend to be sticky in the short term, so in some years internally generated flows will be enough for financing company needs and in some years not; (4)funds obtained in years of financial surpluses, after payment of dividends and financing, are directed to finance short-
