Similar Search Results

Auditing as a Signal in Small Business Lending

Dharan, Bala G. - In: Journal of Entrepreneurial Finance 2 (1992) 1, pp. 1-11

This paper models the borrowing decision of a small firm seeking a bank loan when it can optionally hire, at a cost, an independent external auditor to convey its risk characteristics to lenders. The analysis shows that a necessary condition for a potential borrower to prefer having an audit to...

Persistent link: https://www.econbiz.de/10010790655

Tools to Apply to Financial Statements to Identify Errors, Omissions and Fraud in Business Valuations

Clevenger, Tom; Baker, Gary - In: Journal of Entrepreneurial Finance 10 (2005) 3, pp. 63-74

sheets and income statements. These sources can be fraught with errors, omissions and even fraud. The cash flow statements … for granted in basic accounting and finance and reality is often not as assumed. The tool kit uses basic accounting and … mathematical logic. This logic, teamed with basic accounting definitions and conventions, allows the economist some comfort that …

Persistent link: https://www.econbiz.de/10010765290

An Empirical Examination of SBA Guaranteed Loans: Rates, Collateral, Agency Costs, and the Time to Obtain the Loan

Brau, James C.; Osteryoung, Jerome S. - In: Journal of Entrepreneurial Finance 6 (2001) 1, pp. 1-23

We empirically examine a sample of over 350 entrepreneurial firms that successfully receive an SBA guaranteed loan. The first portion of the paper contains descriptive statistics that lend anecdotal evidence concerning the organization type of borrowers, the incidence of collateral, the reasons...

Persistent link: https://www.econbiz.de/10011310372

Which Loans are Relationship Loans? Evidence from the 1998 Survey of Small Business Finances

Mitchell, Karlyn; Pearce, Douglas K. - In: Journal of Entrepreneurial Finance 9 (2004) 2, pp. 1-36

Despite financial economists' long-standing interest in the role of lender-borrower relationships in increasing the availability of funds to small businesses, many questions remain unanswered. Numerous empirical studies investigate the effect of relationships on the availability and terms of...

Persistent link: https://www.econbiz.de/10011133307

A Robust Valuation Model for Entrepreneurial Ventures

Kedar-Levy, Haim - In: Journal of Entrepreneurial Finance 16 (2013) 2, pp. 57-74

Pro forma estimation of financial statements often builds on constant ratios to sales revenue. While constant ratios may be relevant for established firms operating in predictable industries, they yield noninformative and possibly misleading information when applied to new firms, and...

Persistent link: https://www.econbiz.de/10010762507

The Valuation Effects of Private Placements of Public Corporations' Common Stock

McDaniel, W. R.; McDaniel, William R. - In: Journal of Entrepreneurial Finance 1 (1992) 3, pp. 205-220

Outside shareholders should benefit when the firm issues common stock through a private placement. Our propositions are (1) that the private issue of common equity creates a value-maximizing insider that has the incentive and ability to monitor and discipline, and thereby reduce agency costs and...

Persistent link: https://www.econbiz.de/10010765305

Some Potential Means for Venture Valuation

Stummer, Wolfgang - In: Journal of Entrepreneurial Finance 7 (2002) 3, pp. 39-52

In some modern venture valuation approaches, option pricing theory plays an important role. The aim of this paper is to present some tools and viewpoints which might be helpful for future investigations along this line. We model the value-dynamics Xt of an imbedded underlying X as a...

Persistent link: https://www.econbiz.de/10010765320

Small Firm Use of Debt: An Examination of the Smallest Small Firms

Coleman, Susan - In: Journal of Entrepreneurial Finance 7 (2002) 1, pp. 51-76

Access to capital is an on-going challenge for small firms. Capital is required to address a broad range of needs: to cover start-up costs, to provide working capital, to secure facilities or equipment, and to hire employees. Most small firms are at a relative disadvantage, because they are too...

Persistent link: https://www.econbiz.de/10010765330

An Analysis of Standardized versus Relationship Bank Lending to Small Firms

Hardee, Polly T. - In: Journal of Entrepreneurial Finance 12 (2008) 3, pp. 23-46

Using the 1998 Survey of Small Business Finances and banking data to produce a bank-firm match, the author tests for evidence of standardized versus relationship lending methods in both total bank credit as well as credit emanating from the firm’s most important source of financial services,...

Persistent link: https://www.econbiz.de/10010790624

Small Business Lending and Bank Profitability

Kolari, James; Berney, Robert; Ou, Charles - In: Journal of Entrepreneurial Finance 5 (1996) 1, pp. 1-15

In theory commercial banks exist to resolve asymmetric information problems in credit markets. Because small business firms have much greater information problems than large firms, it is not surprising that they depend almost entirely on banks for external finance needs. Unfortunately, little is...

Persistent link: https://www.econbiz.de/10010790653