Cultural Preferences and Firm Financing Choices

The financing preferences of small firm owners

Introduction Most small firms will never be able to raise all the funding they would like from banks and other institutions. In this crude sense there will always be a deficiency in the funding of the sector equal to the difference between the total demand for funding and that part of this demand which qualifies for funding support. This paper focuses more narrowly on the debt versus equity pre...

REIT Financing Choices: Preparation Matters

Sun, Titman, and Twite (2014) find that risky capital structure characteristics, such as high leverage, a high share of debt due in the near future and a high share of variable-rate debt, significantly reduce the cumulative total returns of US REITs over the 2007-2009 financial crisis. In this paper we show that preparing ahead of the crisis significantly improved the cumulative return over the...

Financing Innovations and Capital Structure Choices

Transparency and financing choices of family firms

We examine how corporate transparency and financing choices differ for family and nonfamily firms in the S&P 1500 Index. While transparency on average is better for firms in the S&P 500 Index than for firms in the S&P MidCap 400 and S&P SmallCap 600 indices, the improvement is much larger for family firms. Outside the S&P 500, family firms are less transparent than their non-family counterparts...

Human Preferences and Risky Choices

however, even stability of parameter values over time and across contexts in the different models does not imply correct model identification, as the parameters map onto different psychological variables. Betsch argues and provides evidence for the conceptualization of preferences as attitudes, whose stability is determined by behavior repetition and processing style. According to Hertwig and G...