Previous studies that test the tradeoff theory commonly use one of the following debt ratio measures to proxy for a firm's hypothesized optimal ratio: firm's time-series mean leverage, moving average leverage based on a firm's historical debt ratios, industry median leverage, and predicted...

With contributions from authors around the globe, Research Handbook of Entrepreneurial Exit explores this most important phenomenon in the entrepreneurial journey. This book presents a comprehensive review of the current issues in entrepreneurial exits, and provides theoretical and...

Purpose – This paper aims to examine the link between financing patterns, information asymmetry and legal traditions in 37 countries during the 1990‐2004 period. Design/methodology/approach – The analysis is based on three theories: the trade‐off theory, pecking order hypothesis and...

Purpose – This paper aims to examine the link between financing patterns, information asymmetry and legal traditions in 37 countries during the 1990-2004 period. Design/methodology/approach – The analysis is based on three theories: the trade-off theory, pecking order hypothesis and market...

This article explores factors affecting the survival and exit routes of new firms created in 2004 using data from the Kauffman Firm Survey. We draw upon the Resource-Based View to test several hypotheses regarding the impact of both tangible and intangible resources on new firm survival in both...

We examine the role of venture capital backing on informational externalities generated by IPO firms. Theoretical models predict that going public firms generate positive externalities creating a spillover effect for other firms to go public. In this paper, we posit that venture backed IPOs...