Abstract

http://ssrn.com/abstract=1973094
 
 

References (39)



 
 

Citations (1)



 


 



Asset-Backed vs. Competence-Driven Leverage: The Next Entrepreneural Finance Challenge - Evidences from the Italian Experience in Finance For Growth


Guido Max Mantovani


Ca' Foscari University in Venice – Department of Management; EM Strasbourg - Business School

December 15, 2011


Abstract:     
We demonstrate that the capital structures of small business is mainly driven by asset-backed concept, particularly by the most liquid part of them, i.e. the operating working capital. Return-to-risk analysis is very less relevant because of its misrepresentation in standard financial reporting system, while long term persistence of optimal return-to-risk ratios is important only for equity funders, i.e. competence value contributors. In the case of the very competitive Treviso’s District in the North-Eastern Italy this context produces a very low-selective financial system. Banks are the main funders of SMEs but their credit allowances seems to flow only to huge-working capital and short term (low-)performers companies: actually a factoring service. In this financial context any allocative selection of corporation to be funded seems to be impossible, reducing both market efficiency along with their completeness through long term growth ratio and entrepreneurial finance development.

Number of Pages in PDF File: 29

Keywords: Capital Structure, Valuation, Incomplete markets, SME

JEL Classification: G13, G24, G32, L26, M13

working papers series


Download This Paper

Date posted: December 15, 2011 ; Last revised: March 28, 2013

Suggested Citation

Mantovani, Guido Max, Asset-Backed vs. Competence-Driven Leverage: The Next Entrepreneural Finance Challenge - Evidences from the Italian Experience in Finance For Growth (December 15, 2011). Available at SSRN: http://ssrn.com/abstract=1973094 or http://dx.doi.org/10.2139/ssrn.1973094

Contact Information

Guido Max Mantovani (Contact Author)
Ca' Foscari University in Venice – Department of Management ( email )
San Giobbe - Cannaregio 873
Venice, Veneto 30121
Italy
0039-041-2348727 (Phone)
0039-041-2348701 (Fax)
HOME PAGE: http://www.unive.it/economia
EM Strasbourg - Business School ( email )
PEGE
61 avenue de la Forêt Noire
Strasbourg, 67000
France
HOME PAGE: http://www.hermes-universities.eu
Feedback to SSRN


Paper statistics
Abstract Views: 343
Downloads: 75
Download Rank: 189,397
References:  39
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 apollo8 in 0.406 seconds