Hongjie Weng

Nov 8, 2023 | onlinelibrary.wiley.com | Li Deng |Peng Huang |Yue Lu |Hongjie Weng

1 INTRODUCTION According to the pecking order theory by Myers (1984), firms prefer internal funds to external funds. When internal funds are not sufficient to support their investment projects, firms may seek external funds such as bank loans and the issuance of corporate debt and equity. Thus, an easy access to external financing is crucial for growing firms with many investment opportunities.