Pecking order
Encyclopedia
Pecking order or just peck order is the colloquial term for a hierarchical system of social organization in chickens. It was first described from the behaviour of poultry
by Thorleif Schjelderup-Ebbe
in 1921 under the German terms Hackordnung or Hackliste' ' and introduced into English in 1927.
The original usage of "peck order" referred to expression of dominance of birds. Dominance in chickens is expressed in various behaviours including pecking which was used by Schjelderup-Ebbe as a measure of dominance and leadership order. In his 1924 German-language article he noted that "defense and aggression in the hen is accomplished with the beak
". A rooster is not required in a hen house. Chickens will lay an egg once every 25 hours. The rooster, if present, may fertilize the egg, but is not needed to simply lay an egg. In small batches of females without a rooster, one female will assume the dominate role. She will stop producing eggs and become the 'watch dog' for the flock.
This emphasis on pecking led most subsequent studies on fowl behaviour to use it as a primary observation. However, it was also noted that rooster
s tended to leap and use their feet in conflicts. The term dominance hierarchy
is often used for this phenomenon in other animals.
It is a basic concept in social stratification
and social hierarchy that has its counterpart in other animal
species
, including humans. Still, the term "pecking order" is often used synonymously; the "pecking order" was the first studied example of the social hierarchy among animals.
The basic concept behind the establishment of the pecking order among, for example, chickens, is that it is necessary to determine who is the 'top chicken,' the 'bottom chicken' and where all the rest fit in between. The establishment of the dominance hierarchy is believed to reduce the incidence of intense conflicts that incur a greater expenditure of energy. The dominance level determines which individual gets preferential access to resources such as food and mates.
, then, when they need outside funding, they prefer to issue severe debt instead of equity.
It suggests that capital structures are determined largely by the history of needs for external finance. Pecking-order theory explains negative intra-industry correlation between profitability and debt to equity ratio
, and the negative share price reaction on announcement of an equity issue (i.e. information asymmetric).
Poultry
Poultry are domesticated birds kept by humans for the purpose of producing eggs, meat, and/or feathers. These most typically are members of the superorder Galloanserae , especially the order Galliformes and the family Anatidae , commonly known as "waterfowl"...
by Thorleif Schjelderup-Ebbe
Thorleif Schjelderup-Ebbe
Thorleif Schjelderup-Ebbe was a Norwegian zoologist who described the pecking order of hens in his PhD dissertation of 1921. The work in his dissertation was partly based on his observations of his own chickens that he had recorded since the age of 10...
in 1921 under the German terms Hackordnung or Hackliste' ' and introduced into English in 1927.
The original usage of "peck order" referred to expression of dominance of birds. Dominance in chickens is expressed in various behaviours including pecking which was used by Schjelderup-Ebbe as a measure of dominance and leadership order. In his 1924 German-language article he noted that "defense and aggression in the hen is accomplished with the beak
Beak
The beak, bill or rostrum is an external anatomical structure of birds which is used for eating and for grooming, manipulating objects, killing prey, fighting, probing for food, courtship and feeding young...
". A rooster is not required in a hen house. Chickens will lay an egg once every 25 hours. The rooster, if present, may fertilize the egg, but is not needed to simply lay an egg. In small batches of females without a rooster, one female will assume the dominate role. She will stop producing eggs and become the 'watch dog' for the flock.
This emphasis on pecking led most subsequent studies on fowl behaviour to use it as a primary observation. However, it was also noted that rooster
Rooster
A rooster, also known as a cockerel, cock or chanticleer, is a male chicken with the female being called a hen. Immature male chickens of less than a year's age are called cockerels...
s tended to leap and use their feet in conflicts. The term dominance hierarchy
Dominance hierarchy
A dominance hierarchy is the organization of individuals in a group that occurs when competition for resources leads to aggression...
is often used for this phenomenon in other animals.
It is a basic concept in social stratification
Social stratification
In sociology the social stratification is a concept of class, involving the "classification of persons into groups based on shared socio-economic conditions ... a relational set of inequalities with economic, social, political and ideological dimensions."...
and social hierarchy that has its counterpart in other animal
Animal
Animals are a major group of multicellular, eukaryotic organisms of the kingdom Animalia or Metazoa. Their body plan eventually becomes fixed as they develop, although some undergo a process of metamorphosis later on in their life. Most animals are motile, meaning they can move spontaneously and...
species
Species
In biology, a species is one of the basic units of biological classification and a taxonomic rank. A species is often defined as a group of organisms capable of interbreeding and producing fertile offspring. While in many cases this definition is adequate, more precise or differing measures are...
, including humans. Still, the term "pecking order" is often used synonymously; the "pecking order" was the first studied example of the social hierarchy among animals.
The basic concept behind the establishment of the pecking order among, for example, chickens, is that it is necessary to determine who is the 'top chicken,' the 'bottom chicken' and where all the rest fit in between. The establishment of the dominance hierarchy is believed to reduce the incidence of intense conflicts that incur a greater expenditure of energy. The dominance level determines which individual gets preferential access to resources such as food and mates.
Pecking order theory in finance
Donaldson observed that firms prefer first to finance investment with retained earningsRetained earnings
In accounting, retained earnings refers to the portion of net income which is retained by the corporation rather than distributed to its owners as dividends. Similarly, if the corporation takes a loss, then that loss is retained and called variously retained losses, accumulated losses or...
, then, when they need outside funding, they prefer to issue severe debt instead of equity.
It suggests that capital structures are determined largely by the history of needs for external finance. Pecking-order theory explains negative intra-industry correlation between profitability and debt to equity ratio
Debt to equity ratio
The debt-to-equity ratio is a financial ratio indicating the relative proportion of shareholders' equity and debt used to finance a company's assets. Closely related to leveraging, the ratio is also known as Risk, Gearing or Leverage...
, and the negative share price reaction on announcement of an equity issue (i.e. information asymmetric).
Further reading
- Schjelderup-Ebbe T (1975) Contributions to the social psychology of the domestic chicken [Schleidt M. Schleidt WM, translators]. In Schein MW (ed); "Social Hierarchy and Dominance. Benchmark Papers in Animal Behavior, Volume 3." Stroudsburg, PA: Dowden, Hutchinson and Ross, pp 35–49. (Reprinted from Zeitschrift fuer Psychologie, 1922, 88:225-252.)
- Pinder, S. (Jun, 2007). Financing Decisions. University of Melbourne Financial Management (333-641) lecture notes.
- Peirson, G., Brown, R., Easton, S. & Howard, P. (2003). Business Finance. North Ryde, NSW, Australia: McGraw-Hill Australia. ISBN 0-07-471439-2.