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Financial theory creates a puzzle. Some authors argue that high-risk entrepreneurs choose debt contracts instead of equity contracts since risky but high returns are of relatively more value for a loan-financed firm. Conversely, authors who focus explicitly on start-up finance predict that...
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Whilst internationally, the Mittelstand in Germany is admired and many countries try to emulate it, the current debate … in Germany praises the Silicon Valley model of entrepreneurship, contrasting the Mittelstand as low-growth, low-tech and … non-innovative - in short: as a hindrance to Germany's economic future. We therefore ask whether the Mittelstand actually …
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Our explorative study analyses the factors that affect the likelihood of German companies to be a hidden champion. Based on an econometric estimation model with quantitative data from 60 hidden champions and 346 non-hidden champions, we could confirm prior research findings that specific...
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