New study challenges traditional financing hierarchy, reshaping business strategies.
The article examines how different methods can lead to different conclusions about the pecking order theory in finance. By studying Greek firms, the researchers found that a negative relationship between debt and profitability doesn't always support the pecking order theory. They used both financial data and survey responses to analyze this, showing that the pecking order theory is more complex than previously thought. It's important to consider both quantitative and qualitative data when studying this theory.