Summarizing the numerous event studies conducted in US stock markets, Eckbo et al. (Eckbo, B. & Masulis, Ronald & Norli, Oyvind. 2007. Security Offerings. Handbook of Corporate Finance: Empirical Corporate Finance) report that announcements of equity issues result in significant negative stock price reaction, which is -2.22% on average, while announcements of straight bond issues have no effect on the stock price. Discuss the reaction of investors to equity and bond issues relating your discussion to the pecking order theory of capital structure.