Determinants of the Capital Structures of European SMEs
Факторы, определяющие структуру капитала европейских малых и средних предприятий
2004-06-01
SCID: 54.1/dvmmfb3e
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European countriesSME capital structurelong-term debtrestricted and unrestricted regressionsshort-term debt
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Abstract (AI)
The aim of this paper is to examine the degree to which the determinants of SMEs’ capital structures differ between European countries. The study is based on data for four thousand SMEs, five hundred from each of eight European countries. Regressions were run using short‐term and long‐term debt as dependent variables and profitability, growth, asset structure, size and age as independent variables. A key feature of this paper is the use of restricted and unrestricted regressions to isolate the country‐effect from the firm‐specific‐effect. The results show that variations are likely to be due to country differences as well as firm‐specific ones.
Key Findings
1
Restricted and unrestricted regressions are used to separate country effects from firm-specific effects in SME capital structures.
2
Short-term and long-term debt are modeled as dependent variables, while profitability, growth, asset structure, size, and age serve as firm-level determinants.
3
The study analyzes capital-structure determinants using data from 4,000 SMEs across eight European countries, with 500 firms per country.
4
Variations in European SMEs’ capital structures are attributable to both country-level differences and firm-specific characteristics.
Research Object
European small and medium-sized enterprises (SMEs) and their capital structures across eight European countries
Research Subject
Country-specific and firm-specific determinants of SMEs’ short-term and long-term debt, including profitability, growth, asset structure, size, and age
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2004-06-01
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