Robb, Alicia M.; Robinson, David T. - In: Review of Financial Studies 27 (2014) 1, pp. 153-179
We study capital structure choices that entrepreneurs make in their firms' initial year of operation, using restricted-access data from the Kauffman Firm Survey. Firms in our data rely heavily on external debt sources, such as bank financing, and less extensively on friends-and-family-based...