How Theory Meets Practice: An Analysis of the Capital Structure of Spanish SMEs
AbstractThe article analyzes the factors determining the capital structure of the Spanish small and medium enterprises [SMEs]. The analysis is grounded on the agency theory, the signalling approach and the pecking order theory. In particular, the article provides a qualitative and quantitative analysis about the impact of company brand, the ownership and control structure, and the relationship between the SMEs and their own financial policy. This analysis is based on defining the expected relationships that one might consider between the referred variables and the total debt ratio. In this regard, the analysis will be conducted by means of considering a survey of 410 Spanish SMEs where an ANOVA test will be applied. Then, a hierarchical regression model will allow comparison of the hypotheses made.
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Bibliographic InfoPaper provided by Universidad Carlos III de Madrid in its series Open Access publications from Universidad Carlos III de Madrid with number info:hdl:10016/7190.
Length: 96 p.
Date of creation: Oct 2006
Date of revision:
Publication status: Published in The Journal of Entrepreneurial Finance & Business Ventures (2006-10) v.v. 11, p.74-94
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Web page: http://www.uc3m.es
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-07-13 (All new papers)
- NEP-HME-2011-07-13 (Heterodox Microeconomics)
- NEP-SBM-2011-07-13 (Small Business Management)
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