Read article of gender diversity and the capital structure of microfinance institutions: A global analysis by Michael Adusei, Emmanuella Yaa Takyiwah Obeng (2018) and answer the following questions.

1. (a) In what way are trade-off theory and pecking order theory similar?

(b) state two main ways in which the trade-off theory and the pecking order theory differ?

2. (a) From the article, identify two factors that account for the order of financing prescribed by pecking order theory.

(b) How does Myers (1984) explain the order of financing articulated by the pecking order theory?

3. (a) why do managers prefer to use less-risky sources of finance?

(b) From the agency theory perspectives, what are the two reasons that favour debt financing?

4. (a) What are the main thesis of life cycle theory of capital structure?

(b) is the life cycle theory of capital structure confirmed in the paper?

5. (a) in One sentence, state the main finding of the paper

(b) How have the authors explained the inverse relationship between board gender diversity and capital structure?