Bashar Abu Khalaf
The main aim of this empirical paper is to examine the pecking order theory of financing between Non-financial Jordanian firms with respect to growth and maturity stages of the life cycle. The association between the life cycle and the funding classification for the years 2000 to 2020 in non-financial companies is investigated through the panel data estimation technique (Fixed and Random Effects). The data is collected from Amman Stock Exchange for the 50 nonfinancial companies that completed two life cycle stages (35 industrial and 15 services companies). Shyam-Sunder and Myers's (1999) model of pecking order model is improvised in this research paper by controlling for firms’ characteristics (profitability and size). The findings of the fixed effect model confirmed the effect of the pecking order model on the debt of Jordanian companies, which are in the growth and maturity phases of the life cycle. The pecking order is followed by the firms which are in the growth and maturity stages.