How SME Uniqueness Affects Capital Structure: Evidence From a 1994-1998 Spanish Data Panel

Sogorb-Mira, Francisco

doi:10.2139/ssrn.393162

Cited by 43 publications

(60 citation statements)

References 57 publications

(51 reference statements)

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“…Although access to finance is not without difficulty for high-growth firms (Becchetti and Trovato, 2002), financial institutions appear to be favourable to resourcing a firm with growth prospects. This is supported by a number of studies reporting a positive relationship between growth and debt ratios (Johnsen and McMahon, 2005, Sogorb Mira, 2005, Daskalakis and Psillaki, 2008. It is proposed that…”

Section: H9: Younger Smaller Firms Are Less Successful In Loan Applimentioning

confidence: 80%

Demand for debt and equity before and after the financial crisis

Bhaird

2013

Research in International Business and Finance

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Supply and demand responses to financial crises result in fluctuations in credit flow to the private sector. Policy makers concerned with the sustainability and growth of viable firms should disaggregate these responses. Utilising firm level data, this study investigates characteristics of firms applying for external finance before and after the financial crisis, along with characteristics of successful applicants. Notwithstanding changes in credit conditions, salient features of external financing demand endure across the period, including ownership, asset structure, age and size. Failure to secure debt in an earlier period does not deter firm owners from applying for loans in a subsequent period. Evidence suggests that the most financially distressed firms are suffering the greatest consequences of the credit crunch.

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Section: H9: Younger Smaller Firms Are Less Successful In Loan Applimentioning

confidence: 80%

Demand for debt and equity before and after the financial crisis

Bhaird

2013

Research in International Business and Finance

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“…Previous studies on listed companies such as Titman & Wessels (1988), and Rajan & Zingales (1995) found negative relationship. Studies on SMEs also confirm the pecking order relationship (Sogorb-Mira, 2003). Therefore, it is expected profitability to be inversely related to leverage.…”

Section: Theory On Capital Structurementioning

confidence: 81%

“…Comparatively, some previous studies define size in a number of ways including number of employees (Berggren, Olofsson, & Silver, 2000), natural logarithm of total asset (Sogorb-Mira, 2003), and sales (Abor, 2007) as a proxy to the variables. Regardless of the proxy used, most of the studies find that the long-term debt has a positive relationship with leverage.…”

Section: Sizementioning

confidence: 99%

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The Determinant of Capital Structure of SMEs in Malaysia: Evidence from Enterprise 50 (E50) SMEs

Saarani¹,

Shahadan²

2013

ASS

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Capital structure have implications in determining the ability and success of a firm, especially to small and medium-sized enterprises (SMEs). This paper analyses the capital structure of SMEs in Malaysia focusing on Enterprise 50 (E50) SMEs. E50 is an annual awards program initiated by government and organized by SME Corporation & Deloitte Malaysia since 1997 to recognize the 50 best SME companies in Malaysia based on their performances and potential to succeed. The secondary data from Companies Commission of Malaysia has been collected for the study. The study employed regression analysis on 334 companies, utilised the accounting data for the five year period of 2005 to 2009. Capital structure is the Dependent Variable referring to debt ratio of the companies, decomposed into Long Term Debt ratio and Short term Debt ratio. The Independent Variables (IV) are age; size; tangibility; liquidity; profitability; growth and taxation. Two theories of capital structure have guided this study i.e. the Trade-Off Theory and the Pecking Order Theory. The study found that size is important if we decomposed the debt into longand short term. In addition, asset tangibility, liquidity and profitability are the main capital structure determinants for SMEs. Age and growth are important for a long term, while taxation is not an important consideration in capital structure decision.

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“…These studies covered a broad area of SMEs literature such as understanding the capital structure determinants of SMEs (Sogorb-Mira, 2005), investigating the key drivers of SME profitability and riskiness for US banks (Kolari and Shin, 2004) and the lending structure and strategies (Berger and Udell, 2004) etc.…”

Section: 3micro Small and Medium-sized Enterprisesmentioning

confidence: 99%

The effect of size on the failure probabilities of SMEs: An empirical study on the US market using discrete hazard model

Kalak

Hudson

2016

International Review of Financial Analysis

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(2016) The effect of size on the failure probabilities of SMEs: An empirical study on the US market using discrete hazard model. AbstractThis paper investigates the extent to which the size affects the SMEs probabilities of bankruptcy.Using a dataset of (11,117) US non-financial firms, of which (465) filed for insolvency under chapters 7/11 between 1980 and 2013. We forecast the bankruptcy probabilities by developing four discretetime duration-dependant hazard models namely SMEs, Micro, Small, and Medium. A comparison of the default prediction models for medium firms and SMEs suggest that almost an identical set of explanatory variables affect the default probabilities leading us to believe that there is no material impact on the decision-making process by treating each of these groups separately. However, comparisons between the micro and small firms with the SMEs firms strongly suggest that they need to be considered separately while modelling credit risk for them.JEL classification:

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How SME Uniqueness Affects Capital Structure: Evidence From a 1994-1998 Spanish Data Panel

Cited by 43 publications

References 57 publications

Demand for debt and equity before and after the financial crisis

Demand for debt and equity before and after the financial crisis

The Determinant of Capital Structure of SMEs in Malaysia: Evidence from Enterprise 50 (E50) SMEs

The effect of size on the failure probabilities of SMEs: An empirical study on the US market using discrete hazard model

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