The debt-equity financing decisions of U.S. startup firms

详细信息    查看全文

• 作者：Susan Coleman ; Carmen Cotei ; Joseph Farhat
• 关键词：Debt ; equity financing decisions ; Startup financing ; Business debt ; Personal debt ; G32 ; M13
• 刊名：Journal of Economics and Finance
• 出版年：2016
• 出版时间：January 2016
• 年：2016
• 卷：40
• 期：1
• 页码：105-126
• 全文大小：311 KB
• 参考文献：Ang JS (1992) On the theory of finance for privately held firms. Journal of Small Business Finance 11(3):195–203
  Ang J, Lin JW, Tyler F (1995) Evidence on the lack of separation between business and personal risks among small businesses. Journal of Small Business Finance 4:197–210
  Ang J, Cole R, Lawson D (2010) The role of owner in capital structure decisions: an analysis of single-owner corporations. Journal of Entrepreneurial Finance 14:1–36
  Ballou J, Barton T, DesRoches D, Potter F, Zhao Z, Santos B, Sebastian J (2007). Kauffman Firm Survey (KFS) Baseline Methodology Report. Available at: http://​papers.​ssrn.​com/​sol3/​papers.​cfm?​abstract_​id=​1024045
  Ballou J, Barton T, DesRoches D, Potter F, Reedy EJ, Robb A, Shane S, Zhao Z (2008). Kauffman Firm Survey: Results from the baseline and first follow-up surveys. Available at: http://​ssrn.​com/​abstract=​1098173
  Berger AN, Udell GF (1998) The economics of small business finance: the roles of private equity and debt markets in the financial growth cycle. Journal of Banking and Finance 22:613–673CrossRef
  Bertrand M, Schoar A (2003) Managing with style: the effect of managers on firm policies. Q J Econ 118:1169–1208CrossRef
  Besanko D, Thakor AV (1987a) Collateral and rationing: sorting equilibria in monopolistic and competitive credit markets. Int Econ Rev 28:671–689CrossRef
  Besanko D, Thakor AV (1987b) Competitive equilibrium in the credit market under asymmetric information. J Econ Theory 42:167–183CrossRef
  Boot AW, Thakor AV, Udell GF (1991) Secured lending and default risk: equilibrium analysis and policy implications and empirical results. Economic Journal 101:458–472CrossRef
  Cassar G (2004) The financing of business start-ups. J Bus Ventur 19:261–283CrossRef
  Cole R (2013) What do we know about the capital structure of privately held firms? Evidence from the surveys of small business finance. Financ Manag 42:68–104CrossRef
  Cole R, Sokolyk T 2013. How do start-up firms finance their assets? Evidence from the Kauffman Firm Surveys, Working paper
  Coleman S, Cotei C, Farhat J (2013) A resource-based view of new firm survival: new perspectives on the role of industry and exit route. J Dev Entrep 18:25
  Cotei C, Farhat J (2011) An application of the two-stage Bivariate Probit-Tobit model to corporate financing decisions. Rev Quant Finan Acc 37:363–380CrossRef
  Frequently Asked Questions (September, 2012). Retrieved from http://​www.​sba.​gov/​advocacy on 5/2/2013.
  Harris M, Raviv A (1991) The theory of capital structure. J Financ 46:297–355CrossRef
  Hovakimian A, Opler T, Titman S (2001) The debt-equity choice. J Financ Quant Anal 36:1–24CrossRef
  Hovakimian A, Hovakimian G, Tehranian H (2004) Determinants of target capital structure: the case of dual debt and equity issues. J Financ Econ 71:517–540CrossRef
  McInish TH (1982) Individual investors and risk-taking. J Econ Psychol 2:125–136CrossRef
  Meng C, Schmidt P (1985) On the cost of partial observability in the Bivariate Probit model. Int Econ Rev 26:71–85CrossRef
  Myers SC (1977) Determinants of corporate borrowings. J Financ Econ 5:147–175CrossRef
  Myers SC (1984) The capital structure puzzle. J Financ 39:575–592CrossRef
  Myers SC, Majluf NS (1984) Corporate financing and investment decisions when firms have information that investors do not have. J Financ Econ 13:187–221CrossRef
  Nofsinger JR, Wang W (2011) Determinants of start-up firm external financing worldwide. Journal of Banking and Finance 35:2282–2294CrossRef
  Robb AM, Robinson DT 2012. The capital structure decisions of new firms. Review of Financial Studies, forthcoming.
  Schmid T (2013) Control considerations, creditor monitoring, and the capital structure of family firms. Journal of Banking and Finance 37:257–272CrossRef
  Stiglitz J, Weiss A (1981) Credit rationing in markets with imperfect information. Am Econ Rev 71:393–410
  Titman S, Wessel R (1988) The determinants of capital structure choice. J Financ 43:1–19CrossRef
  Verheul I, Thurik R (2001) Start-up capital: does gender matter? Small Bus Econ 16:329–345CrossRef
  
• 作者单位：Susan Coleman (1)
  Carmen Cotei (1)
  Joseph Farhat (2)
  
  1. Barney School of Business, University of Hartford, 200 Bloomfield Ave, 06117, West Hartford, CT, USA
  2. School of Business, Central Connecticut State University, 1615 Stanley St, 06050, New Britain, CT, USA
  
• 刊物主题：Economics general; Financial Economics; Finance/Investment/Banking;
• 出版者：Springer US
• ISSN：1938-9744

文摘

We examine the debt-equity decisions of startup firms using the Kauffman Firm Survey, the largest database of U.S. startups launched in 2004. To control for sample selection bias and the correlation among financing decisions, we employ a Bivariate Probit-Tobit model. Our results show that several firm characteristics such as growth prospects, firm size, tangible assets, and selling products, as well as owner characteristics such as net worth, experience, education and ethnicity explain the debt-equity decisions in the startup year. In addition, for firms that use debt, we document traits that explain the use of a particular type of business versus personal debt. Larger firms use more business debt, whereas home-based and growth firms use more personal sources of debt. Immigrants, owners who lack work experience and those who invest more time in the business tend to rely more on personal sources of debt. Keywords Debt-equity financing decisions Startup financing Business debt Personal debt