IDEAS home Printed from https://ideas.repec.org/a/taf/ujbmxx/v57y2019i4p1232-1251.html
   My bibliography  Save this article

Employment Protection and SME Capital Structure Decisions

Author

Listed:
  • Nico Dewaelheyns
  • Cynthia Van hulle
  • Yannick Van landuyt

Abstract

This study examines the effect of employment protection (EP) on the capital structure of SMEs. We argue that EP is linked to both the level of leverage and leverage adjustments because of its impact on financial distress costs and a firm's operational leverage. Data on employment contract types allow us to compose company specific measures of exposure to EP using a panel data set of 14,858 Belgian SMEs between 2000 and 2012. Our results show that the leverage ratio of firms is higher and that firms are more likely to adjust leverage levels when they are subject to fewer EP obligations.

Suggested Citation

  • Nico Dewaelheyns & Cynthia Van hulle & Yannick Van landuyt, 2019. "Employment Protection and SME Capital Structure Decisions," Journal of Small Business Management, Taylor & Francis Journals, vol. 57(4), pages 1232-1251, October.
    • Handle: RePEc:taf:ujbmxx:v:57:y:2019:i:4:p:1232-1251
    DOI: 10.1111/jsbm.12383
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1111/jsbm.12383
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1111/jsbm.12383?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

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

    Citations

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


    Cited by:

    1. Daisuke Tsuruta, 2023. "Do small businesses adjust their capital structure? Evidence from the global financial crisis in Japan," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 63(S1), pages 843-871, April.

    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:taf:ujbmxx:v:57:y:2019:i:4:p:1232-1251. See general information about how to correct material in RePEc.

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/ujbm .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.