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...

This paper uses an agency theory perspective to develop an understanding of the determinants of auditor change for small firms in the United Kingdom. The paper, therefore, extends the existing literature (see Williams [22] and Francis and Wilson [9]) from a consideration of auditor change for...

To keep up with the rather fast-growing interest in the discipline of Behavioral Finance and Economics caused in part by the new realities of the post-200S world, and the realities prevailing over three decades before and leading up to that year- there is a discernible need for the production of...

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...

In an emerging field of scholarship such as Small Business Finance, there is often a chicken-and-egg problem at the outset. Prospective researchers are generally discouraged by an initial lack of infrastructure such as relevant bibliographic facilities, journals, conferences and data sources. In...

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...

During the process of starting and growing a company, entrepreneurs seek help from their key advisors, which include its directors, advisory board members, financiers, as well as others informally affiliated with the venture. This paper examines how the various groups add value to a venture and...

The need to finance high growth and manage the interests and needs of investors makes value creation a critical concern for entrepreneurial businesses. Almost any financial endeavor, such as attracting new investors or making investment decisions, necessitates the consideration of the equity...

The motivation for this contingency-type study is based on the notion that prior studies on management accounting systems (MAS) has almost entirely focused on large business organizations and neglected consideration of the effects of contextual variables and MAS on organizational effectiveness...

Often economists are asked to value business. Many times the information provided is minimal and of questionable value. Data may be provided by parties wishing to bias the valuation. The financial statements typically provided are balance sheets and income statements. These sources can be...