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Financing High-Tech Growth: The Role of Debt or Equity

David B. Audretsch () and Erik E. Lehmann ()

Papers on Entrepreneurship, Growth and Public Policy from Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group

Abstract: Using a data set of the firms listed on the Neuer Markt in Germany, this paper demonstrates that venture backed firms differ from firms with other financial resources, especially debt. Thus, the results of this study provide evidence for the hypothesis that small and innovative firms are more likely to be financed by venture capitalists instead of banks. We also provide evidence that the presence of venture capitalists enhance the growth rates of firms positively.

Keywords: Venture Capital; New Economy; Entrepreneurship; Corporate Governance (search for similar items in EconPapers)
JEL-codes: G32 L11 M13 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cfn, nep-eec, nep-ent, nep-fin and nep-ino
Date: 2004-05
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Persistent link: http://EconPapers.repec.org/RePEc:esi:egpdis:2004-19

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