IDEAS home Printed from https://ideas.repec.org/a/ids/ijeven/v4y2012i2p97-110.html
   My bibliography  Save this article

Factors related to the capital structure of small new ventures

Author

Listed:
  • Rainer Harms
  • Robert J. Breitenecker
  • Erich J. Schwarz
  • Malgorzata A. Wdowiak

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.

Suggested Citation

  • Rainer Harms & Robert J. Breitenecker & Erich J. Schwarz & Malgorzata A. Wdowiak, 2012. "Factors related to the capital structure of small new ventures," International Journal of Entrepreneurial Venturing, Inderscience Enterprises Ltd, vol. 4(2), pages 97-110.
  • Handle: RePEc:ids:ijeven:v:4:y:2012:i:2:p:97-110
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=46527
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:ijeven:v:4:y:2012:i:2:p:97-110. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Carmel O'Grady). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=123 .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.