search query: @indexterm Financial structure / total: 55
reference: 4 / 55
| Author: | Huyghebaert, N. Gucht, L.M. van de |
| Title: | The determinants of financial structure: new insights from business start-ups |
| Journal: | European Financial Management
2007 : JAN, VOL. 13:1, p. 101-133 |
| Index terms: | financial structure capital structure of companies information new enterprise entrepreneurship small business |
| Language: | eng |
| Abstract: | Business start-ups lack prior history and reputation, face high failure risk, and have highly concentrated ownership. As a result, financing decisions are affected by information and incentive problems. This paper deals simultaneously with the impact of these issues on leverage, debt mix and maturity. It is found that start-ups with high adverse selection and risk shifting problems contract less bank debt, compensating with other sources of debt. Start-ups in growing industries have lower leverage, but raise more bank debt etc. |
SCIMA