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Debt Costs Determinants in Small Enterprise

Uwarunkowania rynkowe rozwoju mikro i małych przedsiębiorstw, A. Bielawska, ed., pp. 465-471, 2006

9 Pages Posted: 16 Aug 2007  

Grzegorz Michalski

Uniwersytet Ekonomiczny we Wrocławiu - Faculty of Engineering and Economics

Abstract

The cost of debt for small enterprises is higher than for other enterprises. The article explains why the cost of debt for small business is higher than for other firms. It is a result of specific characteristics of small enterprises. First of all, the small enterprises are more risky than other firms. Next, in small enterprises, agency costs and information asymetry are different than in other firms. All of them cause, the growing of the cost of debt for small enterprises.

Notes: Downloadable document is in Polish.

Keywords: Value of liquidity, kost of debt, Value based management, Demand for Liquidity, agency costs, Risk, Uncertainty

JEL Classification: G39, G32, G11, M11, D81, O16, P33, P34

Suggested Citation

Michalski, Grzegorz, Debt Costs Determinants in Small Enterprise. Uwarunkowania rynkowe rozwoju mikro i małych przedsiębiorstw, A. Bielawska, ed., pp. 465-471, 2006. Available at SSRN: https://ssrn.com/abstract=1007383

Grzegorz Michalski (Contact Author)

Uniwersytet Ekonomiczny we Wrocławiu - Faculty of Engineering and Economics ( email )

ul. Komandorska 118-120
Wroclaw, 53-345
Poland

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