Private Company Finance and Financial Reporting
Forthcoming, Accounting and Business Research
53 Pages Posted: 8 Mar 2017 Last revised: 16 Apr 2017
Date Written: March 12, 2017
This article provides a comprehensive assessment of private firms’ financing sources and their relation with financial reporting practices. We consider debt financing (bank financing, leasing, and government guarantees), equity financing (family ownership, government ownership, employee ownership, and private-equity financing,), and trade credit (supplier credit and factoring). Our primary conclusions are that there is significant heterogeneity in the way in which private companies are financed that is influenced by their specific business contexts, and that this heterogeneity in financing is associated with differential demand for and supply of financial reporting.
Keywords: Private firms, financing, financial reporting quality, demand and supply factors
JEL Classification: G30, G32, G34, J54, L33, M40, M41
Suggested Citation: Suggested Citation