voluntarily are likely to have come to the market to rebalance their leverage rather than to finance their growth opportunities …. During their public life, their leverage remained very high, they could not raise equity capital, and their profitability …

) profitability and debt tax shields are no longer significantly important when entrepreneurs adopt informal debt financing; (ii) high … and assets. On the other hand, those with access to formal sources take advantage of leverage tools from using formal … loans to exploit the tax benefits against the costs of financial distress. Other noteworthy findings include: (i …

heavily reliant on internal finance and the quantity and price channels are expected to drive usage of debt. Our findings on … in their region. These results point out that semi-local and national institutions tend to drive away usage of debt due … to monitoring costs or credit rationing, while very local institutions increase the usage of debt through quantity or …

increase their debt capacity. Beyond contract- and firm-specific characteristics, demographic and socio … young firms use leasing to increase their debt capacity. These results are important for aging populations where the …

of funding, the results show that bank borrowings are still the most important source of debt financing. However …, retention of earnings gains in importance for German SMEs in comparison to debt financing. …