Please critically read the following article (posted on Stream) and answer/address the questions below. Note that you can also add more sources to make your answers more comprehensive (not
definitely required but a plus).
Wellalage, N.H., & Locke, S.M. (2014). Captial Structure Choice: A Case Study on New Zealand Unlisted Firms. American Journal of Finance and Accounting, 38, 93108.
1. Provide a comprehensive (and yet concise) discussion on typical facts about capital structure choices among SMEs (e.g. unlisted companies), especially in the context of New Zealand. If you can also provide an example based on the practice of your own
business (owned or employed) in your discussion, that will be a plus.
2. Comprehensively describe the concept/idea of Pecking Order Theory in explaining capital structure choices among firms, especially in the context of SMEs. Based on Table 3 of the article, does any of the findings in this study consistent with the Pecking Order Theory of capital structure? Explain your answers with specific details (You can ignore the econometrics issues around the use of GMM or the treatment of endogeneity issues
through the use of lag instrumental variables (L1 seen in Table 3))
Pretty much you can used the upload files for other sources to use to use and there are two questions to answer and whatever words count I will order then please you need to divide them in these two questions!
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