Financing Decisions Along a Firm’s Life Cycle: Debt as a Commitment Device
We analyze the life-cycle patterns of a firm's financing decisions and their interaction with future growth and development decisions. The framework derives three diferent financing sequences (debt-debt, equity-debt, equity-equity financing) which we link to existing empirical research. Furthermore, by adopting a life-cycle approach we are able to go one step beyond existing empirical research and derive testable hypotheses with respect to diferences in the financing decisions of firms due to project, firm, market and country characteristics as well as the impact of a possible lack of start-up financing possibilities on firm dynamics.
|Date of creation:||2009|
|Date of revision:|
|Contact details of provider:|| Phone: : +52 (55) 5950-4268|
Fax: +52 (55) 5950-4269
Web page: http://www.iberoeconomia.mx
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Alicia M. Robb & David T. Robinson, 2014.
"The Capital Structure Decisions of New Firms,"
Review of Financial Studies,
Society for Financial Studies, vol. 27(1), pages 153-179, January.
- Viet A. Dang, 2011. "Leverage, Debt Maturity and Firm Investment: An Empirical Analysis," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 38(1-2), pages 225-258, 01.
- Cassar, Gavin, 2004. "The financing of business start-ups," Journal of Business Venturing, Elsevier, vol. 19(2), pages 261-283, March.
- Ilya A. Strebulaev, 2007.
"Do Tests of Capital Structure Theory Mean What They Say?,"
Journal of Finance,
American Finance Association, vol. 62(4), pages 1747-1787, 08.
- Ilya A. Strebulaev, 2004. "Do Tests of Capital Structure Theory Mean What They Say?," Econometric Society 2004 North American Summer Meetings 646, Econometric Society.
- Ronald W. Anderson & Kjell G. Nyborg, 2001.
"Financing and corporate growth under repeated moral hazard,"
LSE Research Online Documents on Economics
25050, London School of Economics and Political Science, LSE Library.
- Anderson, Ronald W. & Nyborg, Kjell G., 2011. "Financing and corporate growth under repeated moral hazard," Journal of Financial Intermediation, Elsevier, vol. 20(1), pages 1-24, January.
- Ron Anderson & Kjell G. Nyborg, 2001. "Financing and Corporate Growth under Repeated Moral Hazard," FMG Discussion Papers dp376, Financial Markets Group.
- Anderson, Ronald W. & Nyborg, Kjell G, 2001. "Financing and Corporate Growth under Repeated Moral Hazard," CEPR Discussion Papers 2920, C.E.P.R. Discussion Papers.
- Gian Luca Clementi & Hugo A. Hopenhayn, 2006. "A Theory of Financing Constraints and Firm Dynamics," The Quarterly Journal of Economics, Oxford University Press, vol. 121(1), pages 229-265.
- Marinescu, Ioana & Klemm, Alexander & Bond, Stephen & Aghion, Philippe, 2004.
"Technology and Financial Structure: Are Innovative Firms Different?,"
3200323, Harvard University Department of Economics.
- Philippe Aghion & Stephen Bond & Alexander Klemm & Ioana Marinescu, 2004. "Technology and Financial Structure: Are Innovative Firms Different?," Journal of the European Economic Association, MIT Press, vol. 2(2-3), pages 277-288, 04/05.
- Cole, Rebel, 2008. "What do we know about the capital structure of privately held firms? Evidence from the Surveys of Small Business Finance," MPRA Paper 8086, University Library of Munich, Germany.
- Chakraborty, Indraneel, 2010. "Investment and Financing under Reverse Asset Substitution," Working Papers 10-2, University of Pennsylvania, Wharton School, Weiss Center.
- Christopher A. Hennessy & Toni M. Whited, 2005.
Journal of Finance,
American Finance Association, vol. 60(3), pages 1129-1165, 06.
- Frank, Murray Z. & Goyal, Vidhan K., 2003. "Testing the pecking order theory of capital structure," Journal of Financial Economics, Elsevier, vol. 67(2), pages 217-248, February.
- Klapper, Leora & Sarria-Allende, Virginia & Zaidi, Rida, 2006. "A firm-level analysis of small and medium size enterprise financing in Poland," Policy Research Working Paper Series 3984, The World Bank.
When requesting a correction, please mention this item's handle: RePEc:uic:wpaper:0409. 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: (Pablo Cotler)
If references are entirely missing, you can add them using this form.