Pecking order theory was first proposed by Donaldson (1961), it was
later revised

by Myers and Majluf in 1984. The hypothesis expresses that organizations
organize their sources of financing (from internal financing to value) as
indicated by the cost of financing,

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wanting to raise value as a financing methods for final resort. Thus, internal
assets are

utilized to start with, and when that is exhausted, debt is issued, and
when it isn’t sensible to issue any more debt, equity is issued. The pecking
order theiry expresses that there are three wellsprings of financing accessible
to firms to be specific: held profit, debt, and equity

(Myers, 1994).