Search results for "internal financing"
showing 6 items of 6 documents
Variation on the theme 'In Search of New Foundations for Corporate Finance and Corporate Governance'
2003
Our purpose is to explore an alternative way to give new foundations to the theory of corporate finance and governance. The definition we give of corporate finance considers capital-budgeting as central. The shortcomings of the contract theory of the firm result in proposing new foundations to corporate finance based on the knowledge-based theories of the firm. Lastly, we explore the consequences of these new foundations. It leads to give new explanations of the role of external equity financing, financial debt and especially of internal financing, and to re-examine the corporate governance and financial evaluation questions.
Life-cycle effects in small business finance
2017
This paper studies the life-cycle profiles of small firms’ cost and use of credit using a panel of Finnish firms. The choice of method matters for the conclusions drawn about the relationship between firm age and financing costs; the cross-sectional age profiles of financing costs are hump-shaped and consistent with hold-up theories, whereas methods that control for cohort fixed effects demonstrate that the financing costs decrease monotonically as the firms mature. The life-cycle profiles of the use of credit also indicate that firms are more dependent on financial intermediaries in the early periods of their lives. Furthermore, the cohorts born during recessions pay higher financing costs…
Public Financing Support Options to Micro-Enterprises for Innovation
2020
Innovation related to the technological advances of entrepreneurship are essential in Industry 4.0. The availability of sufficient funding is one of the factors promoting innovations in companies. Therefore the issue of access to finance remains relevant. The study investigates the availability of public financial support for micro-enterprises - the largest enterprise category in Latvia (approximately 94%), focusing on those for whom the introduction of innovations is essential for their growth. In an ad hoc survey of companies registered in Latvia in nationally defined sectors, entrepreneurs disclosed their sources of funding over the three-year period: 2015-2017. Valid responses from 2511…
Alternative Financing of SMEs in the Baltic States: Myth or Reality?
2014
Abstract Alternative financing for small business can help companies whose owners can’t get traditional financing resources as small business loans, overdrafts and personal credit cards. New companies typically seek alternative financing when their companies have not been in business long enough to establish credit profiles with financial institutions. Access to alternative financing together with traditional financial resources represents one of the most significant challenges for new SMEs not only in the Baltic States but all over the world. Ensurance of new SMEs creation, existence and growth asks understanding of SMEs’ financing needs and alternative funding is one of them. Alternative …
Women executives and financing pecking order of GEM-listed companies: Moderating roles of social capital and regional institutional environment
2021
Abstract This paper investigates the financing options of female executives within China’s unique environment. We examined 154 GEM enterprises listed on the Shenzhen Stock Exchange from 2009 to 2016. The data were analyzed using statistical procedures including multilevel regression analysis based on the existing financing pecking order models. Empirical evidence shows that women executives are less likely to use internal and debt financing. In terms of internal financing willingness, social capital and external institutional environment have negative and positive moderating effects respectively. In terms of debt financing willingness, social capital has a positive moderating effect. In add…
Variation sur le thème 'A la recherche de nouvelles fondations pour la finance et la gouvernance d'entreprise'
2001
L'objectif de cet article est de proposer une voie alternative à celle que préconise Zingales pour donner de nouvelles fondations à la finance d'entreprise. En empruntant le même cheminement que Zingales, cet article retient premièrement une définition plus large de la finance, accordant à l'investissement une place au moins équivalente à celle du financement. Deuxièmement, considérant que la vision contractuelle, dans son interprétation traditionnelle fondée sur la protection des actifs spécifiques, conduit à une théorie financière déconnectée de toute considération productive, il propose de lui substituer les théories de la firme associées aux courants cognitifs. Troisièmement, les conséq…