Final published version
Research output: Contribution to Journal/Magazine › Journal article › peer-review
Research output: Contribution to Journal/Magazine › Journal article › peer-review
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TY - JOUR
T1 - Outside enterpreneurial capital
AU - Cosh, A.
AU - Cumming, D.
AU - Hughes, A.
PY - 2009/10/1
Y1 - 2009/10/1
N2 - This article investigates factors that affect rejection rates in applications for outside finance among different types of investors (banks, venture capital funds, leasing firms, factoring firms, trade customers and suppliers, partners and working shareholders, private individuals and other sources), taking into account the non‐randomness in a firm’s decision to seek outside finance. The data support the traditional pecking order theory. Further, the data indicate that firms seeking capital are typically able to secure their requisite financing from at least one of the different available sources. However, external finance is often not available in the form that a firm would like.
AB - This article investigates factors that affect rejection rates in applications for outside finance among different types of investors (banks, venture capital funds, leasing firms, factoring firms, trade customers and suppliers, partners and working shareholders, private individuals and other sources), taking into account the non‐randomness in a firm’s decision to seek outside finance. The data support the traditional pecking order theory. Further, the data indicate that firms seeking capital are typically able to secure their requisite financing from at least one of the different available sources. However, external finance is often not available in the form that a firm would like.
U2 - 10.1111/j.1468-0297.2009.02270.x
DO - 10.1111/j.1468-0297.2009.02270.x
M3 - Journal article
VL - 119
SP - 1494
EP - 1533
JO - Economic Journal
JF - Economic Journal
SN - 0013-0133
IS - 540
ER -