Abstract

http://ssrn.com/abstract=1573685
 
 

References (139)



 
 

Citations (1)



 


 



Beg, Borrow, and Deal? Entrepreneurs' Choice of Financing and New Firm Innovation


Sheryl Winston Smith


Temple University - Fox School of Business

March 15, 2011


Abstract:     
Entrepreneurs rely on a spectrum of financing options for new companies. I analyze two key aspects: the role of debt and bank loans in the early financing of new firms and the relationship between financing choice and subsequent innovation trajectory. I use microdata in the confidential Kauffman Firm Survey (KFS) dataset. The results suggest bank loans play a role in early stage financing in firms across a spectrum of high-technology industries. Second, conditional on the initial financing mix I use a two-stage analysis to probe the relationship between financing and innovation. In a novel strategy, I exploit the role of entrepreneurial optimism to discern the relationship between debt financing and innovation outcomes, conditional on the endogenous choice of financing.

Number of Pages in PDF File: 33

Keywords: New firms and startups, entrepreneurial finance, capital structure, technological innovation

JEL Classification: M13, G32, G21, O34

working papers series


Download This Paper

Date posted: March 18, 2010 ; Last revised: April 21, 2014

Suggested Citation

Winston Smith, Sheryl, Beg, Borrow, and Deal? Entrepreneurs' Choice of Financing and New Firm Innovation (March 15, 2011). Available at SSRN: http://ssrn.com/abstract=1573685 or http://dx.doi.org/10.2139/ssrn.1573685

Contact Information

Sheryl Winston Smith (Contact Author)
Temple University - Fox School of Business ( email )
Fox School of Business and Management
Philadelphia, PA 19122
United States
HOME PAGE: http://astro.temple.edu/~swsmith/Sheryl_Winston_Smith/Welcome.html

Feedback to SSRN


Paper statistics
Abstract Views: 1,589
Downloads: 384
Download Rank: 40,756
References:  139
Citations:  1
Paper comments
No comments have been made on this paper

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo3 in 0.703 seconds