The capital structure decisions of new firms
Publication
, Journal Article
Robb, AM; Robinson, DT
Published in: Review of Financial Studies
January 1, 2014
We study capital structure choices that entrepreneurs make in their firms' initial year of operation, using restricted-access data from the Kauffman Firm Survey. Firms in our data rely heavily on external debt sources, such as bank financing, and less extensively on friends-and-family-based funding sources. Many startups receive debt financed through the personal balance sheets of the entrepreneur, effectively resulting in the entrepreneur holding levered equity claims in their startups. This fact is robust to numerous controls, including credit quality. The reliance on external debt underscores the importance of credit markets for the success of nascent business activity. © The Author 2012.
Duke Scholars
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Published In
Review of Financial Studies
DOI
EISSN
1465-7368
ISSN
0893-9454
Publication Date
January 1, 2014
Volume
27
Issue
1
Start / End Page
153 / 179
Related Subject Headings
- Finance
- 3801 Applied economics
- 3502 Banking, finance and investment
- 1502 Banking, Finance and Investment
- 1402 Applied Economics
- 1401 Economic Theory
Citation
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MLA
NLM
Robb, A. M., & Robinson, D. T. (2014). The capital structure decisions of new firms. Review of Financial Studies, 27(1), 153–179. https://doi.org/10.1093/rfs/hhs072
Robb, A. M., and D. T. Robinson. “The capital structure decisions of new firms.” Review of Financial Studies 27, no. 1 (January 1, 2014): 153–79. https://doi.org/10.1093/rfs/hhs072.
Robb AM, Robinson DT. The capital structure decisions of new firms. Review of Financial Studies. 2014 Jan 1;27(1):153–79.
Robb, A. M., and D. T. Robinson. “The capital structure decisions of new firms.” Review of Financial Studies, vol. 27, no. 1, Jan. 2014, pp. 153–79. Scopus, doi:10.1093/rfs/hhs072.
Robb AM, Robinson DT. The capital structure decisions of new firms. Review of Financial Studies. 2014 Jan 1;27(1):153–179.
Published In
Review of Financial Studies
DOI
EISSN
1465-7368
ISSN
0893-9454
Publication Date
January 1, 2014
Volume
27
Issue
1
Start / End Page
153 / 179
Related Subject Headings
- Finance
- 3801 Applied economics
- 3502 Banking, finance and investment
- 1502 Banking, Finance and Investment
- 1402 Applied Economics
- 1401 Economic Theory