Despite numerous works about the structure of capital, we still ignore on which bases enterprises make their financing choices (Myers, 1993). The case of France is in this matter of particular interest, because according to various works, French enterprises are alleged to have reduced their...

Several governments have designed tax incentive programs to promote small business finance, yet evidence of their efficiency is very scarce. This article analyzes the QBIC program, introduced in Quebec to help capitalize SME. Individual investors in holding companies that finance one or more...

Some analysts and policy makers consider that the growth of New Technology Based Firms (NTBF) is impeded by an insufficient supply of capital. In Canada, as in other jurisdictions, the public authorities have interceded to fill this equity gap by increasing the supply of funds. However, several...

Canadian listed firms issue private offerings more often than public offerings. Yet the issuing cost of private investments in public equity (PIPEs) has neither been analyzed nor compared with the cost of conventional seasoned equity offerings (SEOs). We examine a sample of 2,108 PIPEs and 1,990...

In Canada, a venture stock market lists micro-capitalization firms that are at a pre-revenue stage, and competes with both formal and informal venture capital (VC). This market provides a higher rate of return and is able to provide seven times more new listings to the main exchange than the VC...

The aim of this study is to measure the cost of capital of the Canadian knowledge based firms in order to compare it with other Canadian firms' cost of capital. To determine which firms are based on knowledge, we use the research and development ratio. Estimations are achieved with several...

To protect investors, securities regulation generally restrains entrepreneurial ventures from entering the stock market. Scholars and regulators contend that strong rules and requirements for listing are essential to prevent the market from failing. However, these constraints can also unduly...

We describe and analyze how a stock exchange can be used to finance emerging companies and to assume the role usually played by private VCs. We find that the Canadian public VC market has a success rate which is approximately four times the corresponding rate for private VC. The public VC market...

To close an asserted equity gap, the Canadian regulators implemented the Capital Pool Company program, which enables small firms to directly access the stock market, thus bypassing the conventional growth cycle. Similar to American Blind Pools/Blank-Checks, Capital Pool Companies have spawned...

We analyze the long-run performance of the population of Canadian firms that cross-list in the US between 1990 and 2005, paying particular attention to cross-delisting companies. We ask why, since numerous firms cross-list to get the advantages associated with cross-listing, these firms'...