Literature pertaining to the “liability of newness†contends that newer firms face particular difficulties and a greater risk of failure. This article seeks to determine if “newness†is also a disadvantage in the acquisition of debt capital. Results indicate that newer firms...

In this paper we examine the relationship between ownership differences and small firms’ financial policies using a survey of U.S. companies. The study finds that financial policies differ according to the type of ownership (private versus public) and by the ownership differences...

Financial capital is necessary not only for business formation but also for business survival and expansion: its role is well documented in the literature. While venture capital and IPOs often make the popular press, the fact is most firms are unable to tap into this market. Instead, they depend...