Capital structure and financing of SMEs: Australian evidence

Title: Capital structure and financing of SMEs: Australian evidence
Creator: Cassar, Gavin; Holmes, Scott
Relation: Accounting and Finance Vol. 43, Issue 2, p. 123-147
Publisher Link: http://dx.doi.org/10.1111/1467-629X.t01-1-00085
Publisher: Blackwell Publishing Asia
Resource Type: journal article
Date: 2003
Description: This paper investigates the determinants of capital structure and use of financing for small and medium sized enterprises. Hypotheses utilising static trade-off and pecking order arguments are empirically examined using a series of firm characteristics including: size, asset structure, profitability, growth and risk. The hypotheses developed are tested using a large Australian nationwide panel survey. The results suggest that asset structure, profitability and growth are important determinants of capital structure and financing. For asset structure the direction of the influence is reliant upon the capital structure or financing measure employed. The results generally support static trade-off and pecking order arguments proposed by theoretical models.
Subject: capital structure; financing; small enterprises; medium enterprises
Identifier: uon:1610
Identifier: http://hdl.handle.net/1959.13/27372
Identifier: ISSN:0810-5391
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