This study develops a parsimonious theoretical model to investigate the pecking order in financing for start-up ventures, especially with convertible securities, under adverse selection where a firm’s investment possibly has a negative value. While the role of convertible securities is limited...

This study investigates the information transmission mechanism involved with the extension of trade credit. It is assumed that the supplier of intermediate goods is superior in acquiring information about the buyer due to specific business relationships between buyer and seller. To induce money...