IDEAS home Printed from https://ideas.repec.org/a/kap/sbusec/v14y2000i1p55-63.html
   My bibliography  Save this article

An Empirical Approach to the Financial Behaviour of Small and Medium Sized Companies

Author

Listed:
  • Lopez-Gracia, Jose
  • Aybar-Arias, Cristina

Abstract

This paper shows how the financial behaviour of small and medium sized companies is influenced by size and business sector. This idea underlies two research approaches to capital structure: (i) credit rationing, and (ii) the pecking order theory. Both approaches are based on asymmetric information and have been widely developed over the past two decades. An analysis has been carried out on 1000 Valencian companies that were randomly selected from the state company registry. These companies were divided by size before analysis. As an innovation, the investigation implements a multivariate MANOVA model that takes into account two key variables in the financing of small and medium firms. Our results show that size influences company self-financing strategies, and that business sector influences short-term financial policy. Copyright 2000 by Kluwer Academic Publishers

Suggested Citation

  • Lopez-Gracia, Jose & Aybar-Arias, Cristina, 2000. "An Empirical Approach to the Financial Behaviour of Small and Medium Sized Companies," Small Business Economics, Springer, vol. 14(1), pages 55-63, February.
  • Handle: RePEc:kap:sbusec:v:14:y:2000:i:1:p:55-63
    as

    Download full text from publisher

    File URL: http://journals.kluweronline.com/issn/0921-898X/contents
    File Function: link to full text
    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.

    References listed on IDEAS

    as
    1. Campa, Jose Manuel, 2004. "Exchange rates and trade: How important is hysteresis in trade?," European Economic Review, Elsevier, vol. 48(3), pages 527-548, June.
    2. Bee Yan Aw & Xiaomin Chen & Mark J. Roberts, 1997. "Firm-level Evidence on Productivity Differentials, Turnover, and Exports in Taiwanese Manufacturing," NBER Working Papers 6235, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Cardone Riportella, Clara & Casasola, María José, 2003. "What do we know about the financial behaviour of the Spanish SME?: an empirical analysis," DEE - Working Papers. Business Economics. WB wb033708, Universidad Carlos III de Madrid. Departamento de Economía de la Empresa.
    2. Bert D'Espallier & Sigrid Vandemaele & Ludo Peeters, 2008. "Investment-Cash Flow Sensitivities or Cash-Cash Flow Sensitivities? An Evaluative Framework for Measures of Financial Constraints," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 35(7-8), pages 943-968.
    3. F. Javier Sánchez Vidal & Juan Francisco Martín Ugedo, 2008. "Edad y tamaño empresarial y ciclo de vida financiero," Working Papers. Serie EC 2008-12, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    4. Coad, Alex & Segarra, Agustí & Teruel, Mercedes, 2013. "Like milk or wine: Does firm performance improve with age?," Structural Change and Economic Dynamics, Elsevier, vol. 24(C), pages 173-189.
    5. Boris F. Blumberg & Wilko A. Letterie, 2008. "Business Starters and Credit Rationing," Small Business Economics, Springer, vol. 30(2), pages 187-200, February.
    6. Francisco Sogorb- Mira, 2002. "How Sme Uniqueness Affects Capital Structure: Evidence From A 1994-1998 Spanish Data Panel," Working Papers. Serie EC 2002-18, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    7. Javier Sánchez-Vidal & Juan Martín-Ugedo, 2005. "Financing Preferences of Spanish Firms: Evidence on the Pecking Order Theory," Review of Quantitative Finance and Accounting, Springer, vol. 25(4), pages 341-355, December.
    8. Filippo di Pietro & Maria-José Palacín-Sánchez & José-Luis Roldan-Salguero, 2015. "Regional development and capital structure of SMEs," Working Papers 2015-003, Universidad Loyola Andalucía, Department of Economics.
    9. Cécile Carpentier & Jean-François L’Her & Jean-Marc Suret, 2012. "Seasoned equity offerings by small and medium-sized enterprises," Small Business Economics, Springer, vol. 38(4), pages 449-465, May.
    10. Susan Coleman, 2006. "Capital Structure in Small Manufacturing Firms: Evidence from the Data," Journal of Entrepreneurial Finance, Pepperdine University, Graziadio School of Business and Management, vol. 11(3), pages 105-122, Fall.
    11. repec:ehu:cuader:24427 is not listed on IDEAS
    12. Bertocco Giancarlo, 2003. "The role of banks in financing small and medium firms," Economics and Quantitative Methods qf0308, Department of Economics, University of Insubria.
    13. Cécile Carpentier & Jean-François L'Her & Jean-Marc Suret, 2010. "Seasoned Equity Offerings by Small and Medium-Sized Enterprises," CIRANO Working Papers 2010s-07, CIRANO.
    14. Ciarán mac an Bhaird & Brian Lucey, 2010. "Determinants of capital structure in Irish SMEs," Small Business Economics, Springer, vol. 35(3), pages 357-375, October.
    15. Kenji Kutsuna & Yuji Honjo, 2006. "Start-up Financing Choice and Post-entry Performance," Discussion Papers 2006-33, Kobe University, Graduate School of Business Administration.
    16. Bartzokas, Anthony, 2001. "Financial Markets and Technological Change: Patterns of Technological and Financial Decisions by Manufacturing Firms in Southern Europe," UNU-INTECH Discussion Paper Series 4, United Nations University - INTECH.
    17. Alfonso, Galindo Lucas, 2006. "Repercusiones de la definición de tamaño empresarial en los resultados empíricos sobre eficiencia y financiación
      [Repercussions of firm size definition on empirical results for firm efficiency and
      ," MPRA Paper 4731, University Library of Munich, Germany, revised 05 Sep 2007.
    18. Geert Campenhout & Tom Caneghem, 2013. "How did the notional interest deduction affect Belgian SMEs’ capital structure?," Small Business Economics, Springer, vol. 40(2), pages 351-373, February.
    19. Maurizio La Rocca & Tiziana La Rocca & Alfio Cariola, 2011. "Capital Structure Decisions During a Firm's Life Cycle," Small Business Economics, Springer, vol. 37(1), pages 107-130, July.
    20. Zhang, Xian & Venus, Jill & Wang, Yong, 2012. "Family ownership and business expansion of small- and medium-sized Chinese family businesses: The mediating role of financing preference," Journal of Family Business Strategy, Elsevier, vol. 3(2), pages 97-105.

    More about this item

    Statistics

    Access and download statistics

    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:kap:sbusec:v:14:y:2000:i:1:p:55-63. 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: (Sonal Shukla) or (Rebekah McClure). General contact details of provider: http://www.springer.com .

    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.