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This paper examines the dynamics trade-off financial structure in presence of ownership dispersion of newly created firms. Our objective is to test empirically the relevance of trade-off theory regards the debt funding behavior of business start-up. We use a sample of 200 business start-ups and...
Persistent link: https://www.econbiz.de/10012588677
This paper offers a new explanation for the prevalent use of convertible securities in venture capital finance. Convertible securities can be used to endogenously allocate cash flow rights as a function of the realized quality of the project. This property can be used to mitigate the double...
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Many policy actions of the CMU have the objective to enhance access to finance for the so-called backbone of the European economy-the SMEs. The CMU aims at improving the framework conditions for SME financing, at strengthening bank lending-as the most important external financing source for...
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domestic exporters. The authors use data on the nontraditional agriculture sector in Peru, which grew seven-fold from 1994 to … 2007. They find tremendous firm entry and exit in the export sector, with exits more likely after one year and among firms … export and to develop new export products and markets when there are sunk costs of discovery and uncertainty about …
Persistent link: https://www.econbiz.de/10011394701
domestic exporters. The authors use data on the nontraditional agriculture sector in Peru, which grew seven-fold from 1994 to … 2007. They find tremendous firm entry and exit in the export sector, with exits more likely after one year and among firms … export and to develop new export products and markets when there are sunk costs of discovery and uncertainty about …
Persistent link: https://www.econbiz.de/10012976392