The existing finance literature is inadequate with respect to its coverage of the debt structure of small and medi-um sized enterprises (SMEs). In addition, the role of trust in accessing finance for such enterprises is under-investigated. This paper presents a mathematical model for optimizing...

This paper contributes to the academic debate on the pecking order theory and SMEs equity financing, in this equity financing gap. In order to address this problem, this study relies on the empirical design that is driven by the premises of the pecking order theory and distinguishes between the...

This paper reviews the evidence on financing technology-based small firms (TBSFs) in Europe. The main findings in the literature are the 1) European TBSF's finance new investments by relying primarily on internal funds, due to capital market failures induced by asymmetric information; 2)...

This paper investigates the determinants of capital structure and use of financing for small and medium sized enterprises. Hypotheses utilizing static trade-off and pecking order arguments are empirically examined using a series of firm characteristics including: size, asset structure,...

We use the lens of the resource-based view and horizontal agency cost theory to analyse the effect of the presence of different types of individual owners, i.e. owner-managers and non-manager individual shareholders, on the performance of high-tech entrepreneurial firms. Ownership enlargement...

This study shows that spin-offs acquire liquidity from their parent firms through the trade credit channel. We compare the trade credit of spin-offs with that of independent start-ups. Our findings reveal that spin-offs increase accounts payable when their parent firms are major suppliers....

This study examines and compares characteristics, financing patterns, and performance outcomes of women-owned and men-owned young entrepreneurial firms. Using fully imputed data from the Kauffman Firm Surveys of U.S. start-up firms, we first examine the differences in firm and owner...

We use data from the World Bank's Enterprise Surveys to test the importance of governance to the availability of credit. We model the credit-allocation process for SMEs in three steps. Based upon these steps, we classify small businesses into four groups based upon their credit needs – firms...