Capital Structure Decisions: Old Issues New Insights from High-Tech SMEs
نویسندگان
چکیده
Based on two sub-samples of SMEs: i) 135 high-tech SMEs; and ii) 330 non high-tech SMEs, using panel data models and the two-step estimation method, this study investigates if the capital structure decisions of high-tech SME and non high-tech SMEs are closer to what is predicted by Pecking Order Theory, or if they are closer to what is predicted by Trade-Off Theory. The results suggest that the capital structure decisions of high-tech SMEs are closer to what is predicted by Pecking Order Theory than to what is predicted by Trade-Off Theory. The empirical evidence suggests that the problems of information asymmetry, the low level of tangible assets and the technological and market uncertainty influence the capital structure decisions of high-tech SMEs.
منابع مشابه
Financing SMEs: a model for optimising the capital structure
This paper argues that the existing finance literature is inadequate with respect to its coverage of capital structure of small and medium sized enterprises (SMEs). In particular it is argued that the cost of equity (being both conceptually ill defined and empirically non quantifiable) is not applicable to the capital structure decisions for a large proportion of SMEs and the optimal capital st...
متن کاملIntellectual Capital and Financing Decisions: Evidence from the U.S. Patent Data
This paper develops a real options model of capital structure to understand two distinct roles played by intellectual capital in corporate financing decisions. First, intellectual capital limits a firm’s debt capacity because of its low liquidation value. Second, intellectual capital enhances a firm’s debt capacity through its positive impact on the earnings dynamics. We show that the former is...
متن کاملSocial Entrepreneurship as an Instrument to Empowering Small and Medium Enterprises: An Islamic Perspective
Small and Medium Enterprises (SMEs) are reckoned as the main player in domestic economic activities. This paper tries to contribute to the development and understanding of SMEs by encompassing social entrepreneurship as an empowering instrument. Considering the latest thought for intellectual milieu, this paper discloses the buried interlocking principles for social entrepreneurship by Islamic ...
متن کاملA multidimensional decision - making model for internationalization of high - tech SMEs in transition economies
Until now, international entrepreneurship has mainly used stage theory, institutional theory, transaction cost economics and the resource-based view to explain or describe the internationalization of SMEs in transition economy context. Following recent literature we contend that these approaches are highlighting interesting elements of decision processes for internationalization, but are not ye...
متن کاملReturnee Entrepreneurs, Science Park Location Choice and Performance: An Analysis of High Technology SMEs in China
Building on an asset complementarity perspective, human capital and social capital measures are used to examine the science park location decisions of returnee entrepreneurs and the performance of their ventures. The study uses a unique, hand-collected dataset of 349 SMEs from Zhongguancun Science Park in China, including 53 SMEs from locations administered by universities. The paper considers ...
متن کامل