A perspective on NZ Capital Structure

Please critically read the following article and answer/address the questions below.

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 (as seen in the article). 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. A Chinese or certain countrys perspective is also acceptable. ( 6 points)

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))

3. Explain whether growth opportunities has received enough attention and/or treatment in this article. If not, how will you improve it accordingly (e.g. what else to consider in the study)?

4. What additional factors do you think should actually matter to capital structure choices of New Zealand SMEs (that are not included in this article)? (You can use additional references to back up your points. The considerations of possible changes due to Covid19 incident would also be a plus.). Same as Question 1, a comparative example/discussion from Chinese of certain countrys perspective is also acceptable.