1,844
Views
94
CrossRef citations to date
0
Altmetric
Research Papers

A two-part fractional regression model for the financial leverage decisions of micro, small, medium and large firms

&
Pages 621-636 | Received 13 Jul 2006, Accepted 28 Jul 2008, Published online: 18 Jun 2009

References

  • Ang , JS . 1991 . On the theory of finance for privately held firms . J. Small Bus. Finan. , 1 ( 3 ) : 185 – 203 .
  • Ang , JS . 1992 . Small business uniqueness and the theory of financial management . J. Small Bus. Finan. , 1 ( 1 ) : 1 – 13 .
  • Berger , AN and Udell , GF . 1995 . Relationship lending and lines of credit in small firm finance . J. Bus. , 68 : 351 – 381 .
  • Berger , AN and Udell , GF . 1998 . The economics of small business finance: the roles of private equity and debt markets in the financial growth cycle . J. Bank. Finan. , 22 : 613 – 673 .
  • Brounen , D , Jong , A and Koedik , K . 2005 . Capital structure policies in Europe: survey evidence . J. Bank. Finan. , 30 ( 5 ) : 1409 – 1442 .
  • Cassar , G . 2004 . The financing of business start-ups . J. Bus. Ventur. , 19 : 261 – 283 .
  • Cassar , G and Holmes , S . 2003 . Capital structure and financing of SMEs: Australian evidence . Account. Finan. , 43 ( 2 ) : 123 – 147 .
  • Chandler , GN and Hanks , SH . 1998 . An examination of the substitutability of founders human and financial capital in emerging business ventures . J. Bus. Ventur. , 13 : 353 – 369 .
  • Chittenden , F , Hall , G and Hutchinson , P . 1996 . Small firm growth, access to capital markets and financial structure: review of issues and an empirical investigation . Small Bus. Econ. , 8 : 59 – 67 .
  • Cook , DO , Kieschnick , R and McCullough , BD . 2008 . Regression analysis of proportions in finance with self selection . J. Empiric. Finan. , 15 : 860 – 867 .
  • Davidson , R and MacKinnon , JG . 1984 . Convenient specification tests for logit and probit models . J. Econometr. , 25 : 241 – 262 .
  • DeAngelo , H and Masulis , RW . 1980 . Optimal capital structure under corporate and personal taxation . J. Finan. Econ. , 8 : 3 – 29 .
  • Diamond , DW . 1989 . Reputation acquisition in debt markets . J. Polit. Econ. , 97 ( 4 ) : 828 – 862 .
  • Egeln , J , Licht , G and Steil , F . 1997 . Firm foundations and the role of financial constraints . Small Bus. Econ. , 9 : 137 – 150 .
  • European Commission, SMEs in Europe . 2003 . Observatory of European SMEs, 7th report
  • Faulkender , M and Petersen , MA . 2006 . Does the source of capital affect capital structure? . Rev. Finan. Stud. , 19 ( 1 ) : 45 – 79 .
  • Fluck , Z , Holtz-Eakin , D and Rosen , H . 1998 . Where does the money come from? The financing of small entrepreneurial enterprises. , Mimeo .
  • Frank , MZ and Goyal , VK . 2008 . “ Tradeoff and pecking order theories of debt ” . In Handbook of Corporate Finance–Empirical Corporate Finance , Edited by: Eckbo , BE . Vol. 2 , 135 – 202 . Amsterdam : Elsevier .
  • Gouriéroux , C , Monfort , A and Trognon , A . 1984 . Pseudo maximum likelihood methods: theory . Econometrica , 52 ( 3 ) : 681 – 700 .
  • Hall , G , Hutchinson , P and Michaelas , N . 2000 . Industry effects on the determinants of unquoted SMEs' capital structure . Int. J. Econ. Bus. , 7 ( 3 ) : 297 – 312 .
  • Hall , GC , Hutchinson , PJ and Michaelas , N . 2004 . Determinants of the capital structures of European SMEs . J. Bus. Finan. Account. , 31 ( 5–6 ) : 711 – 728 .
  • Harris , M and Raviv , A . 1990 . Capital structure and the informational role of debt . J. Finan. , 45 ( 2 ) : 321 – 349 .
  • Holmes , S and Kent , P . 1991 . An empirical analysis of the financial structure of small and large Australian enterprises . J. Small Bus. Finan. , 1 ( 2 ) : 141 – 154 .
  • Hutchinson , RW . 1995 . The capital structure and investment decisions of the small owner-managed firm: some exploratory issues . Small Bus. Econ. , 7 : 231 – 239 .
  • Jensen , MC . 1986 . Agency costs of free cash flow, corporate finance, and takeovers . Am. Econ. Rev. , 76 : 323 – 339 .
  • Jensen , MC and Meckling , WH . 1976 . Theory of the firm: managerial behaviour, agency costs, and capital structure . J. Finan. Econ. , 3 ( 4 ) : 305 – 360 .
  • Jensen , G , Solberg , D and Zorn , T . 1992 . Simultaneous determination of insider ownership, debt, and dividend policies . J. Finan. Quant. Anal. , 27 ( 2 ) : 247 – 263 .
  • Johnson , SA . 1997 . An empirical analysis of the determinants of corporate debt ownership structure . J. Finan. Quant. Anal. , 32 ( 1 ) : 47 – 69 .
  • Jordan , J , Lowe , J and Taylor , P . 1998 . Strategy and financial policy in UK small firms . J. Bus. Finan. Account. , 25 ( 1–2 ) : 1 – 27 .
  • Kraus , A and Litzenberg , R . 1973 . A state-preference model of optimal financial leverage . J. Finan. , 28 : 911 – 920 .
  • Kurshev , A and Strebulaev , IA . 2007 . Firm size and capital structure. , Mimeo .
  • Levenson , AR and Willard , KL . 2000 . Do firms get the financing they want? Measuring credit rationing experienced by small businesses in the US . Small Bus. Econ. , 14 : 83 – 94 .
  • Lopez-Gracia , J and Aybar-Arias , C . 2000 . An empirical approach to the financial behaviour of small and medium sized companies . Small Bus. Econ. , 14 : 55 – 63 .
  • Maddala , GS . 1991 . A perspective on the use of limited-dependent and qualitative variables models in accounting research . Account. Rev. , 66 ( 4 ) : 788 – 807 .
  • McDonald , JF and Moffitt , RA . 1980 . The use of tobit analysis . Rev. Econ. Stat. , 62 ( 2 ) : 318 – 321 .
  • Michaelas , N , Chittenden , F and Poutziouris , P . 1999 . Financial policy and capital structure choice in U.K. SMEs: empirical evidence from company panel data . Small Bus. Econ. , 12 : 113 – 130 .
  • Modigliani , F and Miller , MH . 1958 . The cost of capital, corporate finance and the theory of investment . Am. Econ. Rev. , 48 ( 3 ) : 261 – 296 .
  • Mulhahy , J . 1986 . Specification and testing of some modified count data models . J. Econometr. , 33 : 341 – 365 .
  • Myers , SC . 1977 . Determinants of capital borrowing . J. Finan. Econ. , 5 : 147 – 175 .
  • Myers , SC . 1984 . The capital structure puzzle . J. Finan. , 39 ( 3 ) : 575 – 592 .
  • Myers , SC and Majluf , NS . 1984 . Corporate financing and investment decisions when firms have information that investors do not have . J. Finan. Econ. , 13 ( 2 ) : 187 – 221 .
  • Pagan , A and Vella , F . 1989 . Diagnostic tests for models based on individual data: a survey . J. Appl. Econometr. , 4 : S29 – S59 .
  • Papke , LE and Wooldridge , JM . 1996 . Econometric methods for fractional response variables with an application to 401(k) plan participation rates . J. Appl. Econometr. , 11 ( 6 ) : 619 – 632 .
  • Petersen , MA and Rajan , RG . 1994 . The benefits of lending relationships: evidence from small business data . J. Finan. , 49 ( 1 ) : 3 – 37 .
  • Pettit , RR and Singer , RF . 1985 . Small business finance: a research agenda . Finan. Manag. , 14 ( 3 ) : 47 – 60 .
  • Pindado , J , Rodrigues , L and de la Torre , C . 2006 . How does financial distress affect small firms' financial structure? . Small Bus. Econ. , 26 ( 4 ) : 377 – 391 .
  • Prasade , S , Green , CJ and Murinde , V . 2005 . “ Company financial structure: a survey and implications for developing economies ” . In Finance and Development: Surveys of Theory, Evidence and Policy , Edited by: Green , CJ , Kirkpatrick , CH and Murinde , V . 356 – 429 . Cheltenham : Edward Elgar .
  • Rajan , RJ and Zingales , L . 1995 . What do we know about capital structure? Some evidence from international data . J. Finan. , 50 ( 5 ) : 1421 – 1460 .
  • Romano , CA , Tanewski , GA and Smyrnios , KX . 2001 . Capital structure decision making: a model for family business . J. Bus. Ventur. , 16 : 285 – 310 .
  • Scherr , FC and Hulburt , HM . 2001 . The debt maturity structure of small firms . Finan. Manag. , 30 ( 1 ) : 85 – 111 .
  • Shyam-Sunder , L and Myers , SC . 1999 . Testing static tradeoff against pecking order models of capital structure . J. Finan. Econ , 51 : 219 – 244 .
  • Sogorb-Mira , F . 2005 . How SME uniqueness affects capital structure: evidence from a 1994–1998 Spanish data panel . Small Bus. Econ. , 25 : 447 – 457 .
  • Strebulaev , IA and Yang , B . 2007 . The mystery of zero-leverage firms. , Mimeo .
  • Van Auken , HE and Neeley , L . 1996 . Evidence of bootstrap financing among small start-up firms . J. Entrepreneurial Small Bus. Finan. , 5 ( 3 ) : 235 – 249 .
  • Vos , E and Forlong , C . 1996 . The agency advantage of debt over the life cycle of the firm . J. Entrepreneurial Small Bus. Finan. , 5 ( 3 ) : 193 – 211 .
  • Voulgaris , F , Asteriou , D and Agiomirgianakis , G . 2004 . Size and determinants of capital structure in the Greek manufacturing sector . Int. Rev. Appl. Econ. , 18 ( 2 ) : 247 – 262 .
  • Wald , JK . 1999 . How firm characteristics affect capital structure: an international comparison . J. Finan. Res. , 22 ( 2 ) : 161 – 187 .
  • Warner , JB . 1977 . Bankruptcy costs: some evidence . J. Finan. , 32 ( 2 ) : 337 – 347 .
  • Watson , R and Wilson , N . 2002 . Small and medium size enterprise financing: a note on some of the empirical implications of a pecking order . J. Bus. Finan. Account. , 29 ( 3 ) : 557 – 578 .
  • Wooldridge , JM . 2003 . Introductory Econometrics–A Modern Approach , 2nd , Mason, OH : South-Western .

Reprints and Corporate Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

To request a reprint or corporate permissions for this article, please click on the relevant link below:

Academic Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

Obtain permissions instantly via Rightslink by clicking on the button below:

If you are unable to obtain permissions via Rightslink, please complete and submit this Permissions form. For more information, please visit our Permissions help page.