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Private Company Finance and Financial Reporting

Forthcoming, Accounting and Business Research

Rotman School of Management Working Paper No. 2928730

53 Pages Posted: 8 Mar 2017 Last revised: 16 Apr 2017

Ole-Kristian Hope

University of Toronto - Rotman School of Management

Dushyantkumar Vyas

University of Toronto - Rotman School of Management; University of Toronto at Mississauga

Multiple version iconThere are 2 versions of this paper

Date Written: March 12, 2017

Abstract

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

Hope, Ole-Kristian and Vyas, Dushyantkumar, Private Company Finance and Financial Reporting (March 12, 2017). Forthcoming, Accounting and Business Research; Rotman School of Management Working Paper No. 2928730. Available at SSRN: https://ssrn.com/abstract=2928730

Ole-Kristian Hope (Contact Author)

University of Toronto - Rotman School of Management ( email )

105 St. George Street
Toronto, Ontario M5S 3E6 M5S1S4
Canada

HOME PAGE: http://www.rotman.utoronto.ca/FacultyAndResearch/Faculty/FacultyBios/Hope.aspx

Dushyantkumar Vyas

University of Toronto - Rotman School of Management ( email )

105 St. George Street
Toronto, Ontario M5S 3E6 M5S1S4
Canada

University of Toronto at Mississauga ( email )

3359 Mississauga Rd N.
Mississauga, Ontario L5L 1C6
Canada

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