Mira, Francisco Sogorb-; Gracia, José Lopez- - Instituto Valenciano de Investigaciones Económicas (IVIE) - 2003
In this paper, we explore two of the most relevant theories that explain financial policy in small and medium enterprises (SMEs): pecking order theory and trade-off theory. Panel data methodology is used to test the empirical hypotheses over a sample of 6482 Spanish SMEs during the five-year...