This paper analyses some of the empirical implications of the pecking order theory in the Spanish market using a panel data analysis of 1,566 firms over 1994–2000. The results show that the pecking order theory holds for most subsamples analyzed, particularly for the small and medium-sized enterprises and for the high-growth and highly leveraged companies. It is also shown that both the more and the less leveraged firms tend to converge towards more balanced capital structures. Finally, we observe that firms finance their funds flow deficits with long term debt. Copyright Springer Science + Business Media, Inc. 2005capital structure, pecking order theory,
The purpose of this paper is to analyze the relationship between ownership structure and indebtedness for a sample of 2,544 Spanish small and medium enterprises. A System Generalized Method of Moments methodology is applied to control for the heterogeneity and endogeneity problems. The finding shows a negative effect of several measures of ownership on debt ratio. Therefore, the presence of an individual as main shareholder has a positive effect on debt, while the presence of a corporation as main shareholder exerts a negative influence. As research implications, this paper includes the agency problem based on principal-principal conflicts to explain the capital structure of small and medium enterprises, going beyond traditional principal-agent conflicts. The main practical implications of the paper is that owners who seek equity financing can use the results of this study for understanding better why investors are reluctant to invest in their small and medium enterprises. Policymakers can use the results of this study to develop better policies and to promote better provision of information for all stakeholders. About the contribution of this study, we are not aware of any paper that uses a panel of small and medium enterprises operating in a French-civil law country to examine the relationship between indebtedness and three different proxies of the ownership structure.
RESUMENEl gravísimo problema de caída de la actividad económica y desempleo en España encuentra un fiel reflejo en el círculo vicioso que genera el cierre de empresas, aproximado en este trabajo por la figura legal del concurso de acreedores. Este artículo se propone examinar el fenómeno desde un punto de vista geográfico para analizar el posible contagio entre provincias. Los resultados muestran que no hay efecto contagio del fracaso en el sector de la construcción, pero sí en el industrial. Es en este sector donde se contagia a la economía vista en su conjunto, pero sólo para los años anteriores a la crisis. En el periodo de recesión parece que tienen más fuerza los factores macroeconómicos negativos que afectan a la totalidad de las empresas que el contagio, que es un efecto particular que ejercen sobre cada compañía las empresas próximas con las que tiene relación.Palabras clave: fracaso empresarial, contagio, efectos de interacción regional. Clasificación JEL: G32, G33, R11. ABSTRACTThe critical problem of decline in economic activity and unemployment in Spain has its reflection in the vicious circle generated by bankruptcy, proxied in this * Artículo recibido el 18 de septiembre de 2014 y aceptado el 10 de agosto de 2015. Cualquier error es responsabilidad exclusiva de los autores.
The aim of this paper is to analyze whether some of the empirical implications of the financial growth cycle hold in a sample of Spanish SMEs. We use a sample of 5,944 observations for the year 2007 and test several hypotheses using MANOVA analysis. The results show that companies tend to have different financing structures depending on their age and size. Hypotheses about trade credit, short term debt and risk are confirmed with respect to age, as the younger companies tend to use proportionally more trade credit and short term debt, and are riskier. Size is also associated in the expected way with trade credit, relative trade credit and relative short-term financial debt. On the other hand hypotheses about equity and the financing deficit are not confirmed. The effect of a pecking order behaviour over a long period of time may provide an explanation of why these two hypotheses are not confirmed.
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