Showing 1 - 10 of 132
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
We examine whether and how investors' reliance on financial information is affected by the rate of sales growth of a start-up venture. We find that investors discern between firms by the extent to which their products are adopted by the market. For firms that failed to increased their sales...
Persistent link: https://www.econbiz.de/10010762508
This paper draws the attention of the new researchers to what has been going on in the Behavioral Finance front and how we can draw from and expand upon such works. By doing so, we hope to find more convincing answers to the key questions that continue to define our fascinating academic niche.
Persistent link: https://www.econbiz.de/10010790616
The purpose of this study was to examine previous literature on Entrepreneurs’ and small businesses’ (hereinafter simply, Entrepreneurs) required rates of return coupled with empirical observation of small business returns. It is hoped that this study provides Entrepreneurs with a guideline...
Persistent link: https://www.econbiz.de/10010790674
Firm entry has been proven to be fundamental for job creation in transition economies. The creation of new ventures as well as their survival and expansion depends on the business environment of the country. It is therefore important to adopt policies aimed at improving the framework conditions...
Persistent link: https://www.econbiz.de/10010790706
Two main approaches have been utilized to explain the relationship between entrepreneurs and their investors. The first is based on the separation of ownership and management i.e. the so-called principal-agent approach. The second emphasizes trust and cooperation in the relationship. This...
Persistent link: https://www.econbiz.de/10010790712
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
We examine the relationship between the small business loan guarantee and the agency problem of small firms. We then recommend financial instruments or financial contracts that can minimize of eliminate the moral hazard problem.
Persistent link: https://www.econbiz.de/10011310373
Although the national media has given increased attention to the venture capital process, misconceptions continue to proliferate. One often hears about the incredible capital gains of IPO share prices. This paper refutes the myth that investors demand very high rates of return to compensate for...
Persistent link: https://www.econbiz.de/10011310374
The nature and role of early stage equity financing in the development of emerging entrepreneurial ventures in the software industry is examined. To provide an understanding of the relationship between the suppliers of capital and the ventures they bankroll, issues concerning equity positions...
Persistent link: https://www.econbiz.de/10011310376