Testing the Pecking Order Theory: Equity Financing in Korea Firms

?????? ????????? ?????? ????????? ??????????????? ?????? ???????????? ??????(2012??? 4.6%)??? ?????? ????????? ??????(2011??? 55.3%)??? ?????? ?????? ????????? ????????? ??? ????????? ??????(???????????? “??????????????????”, 2013-6??? ??????). ?????????????????? ???????????? ????????? ????????? ?????????????????? ???????????? ???????????? ?????????????????? ???????????? ??????????????? ??????????????? ????????? ????????? ????????? ??? ??????. ?????? ???????????? ???????????? ????????????(pecking order theory)??? ???????????? ???????????? ??????????????? ?????? ????????? ???????????? ????????? ???????????? ????????? ??????????????? ???????????? ????????? ?????? ??????. ????????? ???????????? ??????????????? ???????????? ????????? ???????????? ??????????????? ?????? ???????????? ???????????? ??????. ????????? ???????????? ???????????? ????????????????????? ????????? ????????? ???????????? ??????????????? ???????????? ??????????????? ???????????? ???????????? ?????? ????????? ????????? ????????????. ??? ????????? ?????? ?????????????????? ????????? ??????????????? ????????? ??????, ????????? ??? ???????????? ???????????? ????????? ????????? ???????????? ??????????????? ??? ???????????? ?????????????????? ???????????? ??? ????????? ??????????????? ???????????? ??????????????? ??????????????? ????????? ???????????????. ??? ?????? ?????? ?????????????????? ?????????????????? ??????????????? ???????????? 63% ????????? ?????????????????? ???????????? 68% ????????? ???????????? ??????????????? ???????????? ????????? ???????????????. ??? ????????? ?????? ???????????? ??????????????? ???????????? ?????????????????? ????????? ???????????? ????????? ?????? ????????? ????????? ???????????? ????????????. Equity financing is not widely used in the Korean financial market, Yet, such inactive uses of equity financing may not be in line with the prediction of the pecking order theory. We directly investigate the firm level decisions of equity financing according to a detailed set of firm categories based on size, growth, profitability, and debt capacity. Surprisingly, our results confirm that more than 66% of equity issuance and 63% of equity repurchase are not consistent with the prediction of the pecking order theory. This finding suggests the need of reevaluation of the pecking order theory in explaining capital structure policies for the Korean market