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| Author: | Garcia-Teruel, P.J. Martinez-Solano, P. |
| Title: | Short-term debt in Spanish SMEs |
| Journal: | International Small Business Journal
2007 : DEC, VOL. 25:6 p. 579-602 |
| Index terms: | debt solvency small and medium-sized enterprises (smes) |
| Freeterms: | debt maturity financial flexibility |
| Language: | eng |
| Abstract: | In this study the authors research small and medium-sized enterprises (SMEs) debt maturity structure in terms of the risk and return trade-off related with the utilization of short-term loans. The authors study over 11,500 Spanish SMEs during the period from 1997 to 2001. Findings indicate that short-term loans are more used in firms with better financial strength, better financial flexibility and significant growth options in addition when the interest cost differential between short- and long-term loans is more evident. In addition the authors found that the size of the firm is a factor as short-term borrowing levels are greater in the smaller firms. |
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