Factors related to the capital structure of small new ventures
Source: International Journal of Entrepreneurial Venturing, Volume 4, Number 2, 2012 , pp. 97-110(14)
Publisher: Inderscience Publishers
Abstract:In the literature, there exists evidence on the capital structure determinants for small ventures, but empirical research for new ventures is limited. We seek to address this gap by presenting a confirmatory analysis of determinants of capital structure of a sample of small new ventures in Austria. An understanding of the determinants of capital structure is vital since a lack of equity can have serious implications for the existence and the prosperity of a new firm. Indicators that relate to the human capital of the founder are easily available and are most prominent in venture financing decisions. Also, the industry chosen and growth intentions can serve as valuable indicators for external investors. Applying ordered logistic regression, influences of the education level, founding experience, leadership experience and turnover on leverage could be detected.
Document Type: Research Article
Affiliations: 1: Dutch Institute for Knowledge Intensive Entrepreneurship (NIKOS), University of Twente, 7500 AE Enschede, P.O. Box 217, The Netherlands. 2: Department of Innovation Management and Entrepreneurship, Klagenfurt University, Universitaetsstrasse 65-67, 9020 Klagenfurt, Austria. 3: Department of Innovation Management and Entrepreneurship, Klagenfurt University, Universitaetsstrasse 65-67, 9020 Klagenfurt, Austria
Publication date: 2012-01-01
- The objective of International Journal of Entrepreneurial Venturing is to provide an international forum in the field of management with the particular focus on the key drivers of entrepreneurship, opportunity, growth and value creation by publishing quality research articles. It also aims to promote and to coordinate developments in these fields of management. As these areas have both industrial and societal implications, the International Journal of Entrepreneurial Venturing encourages the broadening and deepening of thought in these fields.