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What Do We Know about the Capital Structure of Small Firms?

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Bibliographic Details
Type of Resource: E-Book
Language: Undetermined
published:
[S.l.] SSRN [2008]
Series: CERGE-EI Working Paper
Source: Verbunddaten SWB
Lizenzfreie Online-Ressourcen
Description
Summary: There are no stylized facts about the capital structure of small firms. Therefore, in this paper I use firm data from 10 Western European countries to contrast the sources of leverage across small and large firms. Specifically, I jointly evaluate the explanatory power of firm-specific, country of incorporation institutional, and macroeconomic factors. Using data that is more comprehensive in coverage than that used in the existing research, I confirm the stylized facts of the capital structure literature for large and listed firms, but I obtain contrasting evidence for smaller companies: First, the country of incorporation carries much more information for small firms supporting the idea that small firms are more financially constrained and face non-firm-specific hurdles in their capital structure choice. Second, using two different leverage measures I show that the relationship of firm size and tangibility to leverage is robust to the measure used for listed, but not for unlisted, firms
Item Description: Nach Informationen von SSRN wurde die urspr├╝ngliche Fassung des Dokuments December 2005 erstellt
Physical Description: 1 Online-Ressource (43 p)
DOI: 10.2139/ssrn.1148201
Access: Open Access