Schafer, Dorothea; Werwatz, Axel; Zimmermann, Volker - In: Industry and Innovation 11 (2004) 3, pp. 225-248
Financial theory creates a puzzle. Some authors argue that high-risk entrepreneurs choose debt contracts instead of equity contracts since risky but high returns are of relatively more value for a loan-financed firm. Conversely, authors who focus explicitly on start-up finance predict that...