Showing 1 - 10 of 77
We apply control rights theory to explain the structure and determinants of financial covenants in private equity backed leveraged buyouts. We analyze 130 German transactions from 2000 to 2008, covering about 40 percent of the LBO market during this period. We consider Germany to be a superior...
Persistent link: https://www.econbiz.de/10003919605
Based on 1182 dyads of German new ventures and venture capitalists involved in a financing round between 2002 and 2007, we examine the impact of spatial proximity on the likelihood of an investment. We find that with each triplication of journey time the relative likelihood of an investment...
Persistent link: https://www.econbiz.de/10008659237
Economic theories provide conflicting hypotheses on how wealth inequality affects entrepreneurial dynamism. To empirically investigate its impact, we construct local measures of household wealth inequality based on financial rents, home equity, and 1880 farmland. We identify its effects on...
Persistent link: https://www.econbiz.de/10010412298
The paper analyzes internal factors which influence the use of equity - and mezzanine-based financing instruments in German privately held family firms. Based on a sample of 195 surveys of family firms, we investigate the impact of family specific goals and corporate governance structures on the...
Persistent link: https://www.econbiz.de/10003919589
Persistent link: https://www.econbiz.de/10011576762
reduce loan granting, especially to firms or from banks with lower capital or liquidity ratios. Moreover, responding to … applications for the same loan, weak banks are less likely to grant the loan. Our results suggest that firms cannot offset the … resultant credit restriction by turning to other banks. Importantly the bank-lending channel is notably stronger when we account …
Persistent link: https://www.econbiz.de/10003972699
reduce loan granting, especially to firms or from banks with lower capital or liquidity ratios. Moreover, responding to … applications for the same loan, weak banks are less likely to grant the loan. Our results suggest that firms cannot offset the … resultant credit restriction by turning to other banks. Importantly the bank-lending channel is notably stronger when we account …
Persistent link: https://www.econbiz.de/10013137617
higher rate of discouraged firms in Eastern Europe is driven more by the presence of foreign banks than by the macroeconomic …
Persistent link: https://www.econbiz.de/10013092032
We model how an information asymmetry between the lending bank and the applying firm about the currency structure of firm revenues may affect loan currency choice. Our framework features a trade-off between the lower cost of foreign currency debt and the costs of currency induced loan default....
Persistent link: https://www.econbiz.de/10013092463
We study how relationships between firms and banks evolved between during the Twentieth century in Britain. We document … likely to add a bank. Deregulation and intensifying competition in the banking sector during the 1970s spurred banks to …
Persistent link: https://www.econbiz.de/10013066889