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Financing preferences: evidence from the Korean market.
- Source :
- Applied Economics; Sep2017, Vol. 49 Issue 44, p4501-4520, 20p, 8 Charts
- Publication Year :
- 2017
-
Abstract
- We investigate the financing decisions of Korean firms during the period of 1996–2015. Korean firms follow a matching strategy for funding their cash needs. Cash inflows from investing activities are the primary source of funding for capital expenditures, and cash inflows from financing activities are the major means of covering cash outflows from financing activities. We also find that Korean firms’ financing practice of handling cash deficits can be described by the pecking order model modified and augmented by cash flow variables. Cash inflows from investing activities account for the major portion of financing to make up for cash deficits, followed by short- and long-term debt, and then equity financing. [ABSTRACT FROM AUTHOR]
- Subjects :
- AUDIT trails
STOCKS (Finance)
CAPITAL investments
EVIDENTIALISM
BUSINESS enterprises
Subjects
Details
- Language :
- English
- ISSN :
- 00036846
- Volume :
- 49
- Issue :
- 44
- Database :
- Complementary Index
- Journal :
- Applied Economics
- Publication Type :
- Academic Journal
- Accession number :
- 123791675
- Full Text :
- https://doi.org/10.1080/00036846.2017.1284993