 What drives gearing in early-stage firms? Evidence from blue economy startupsBo Zhu, Chao Liang, Nawazish Mirza and Muhammad Umar Journal of Business Research, 2023, vol. 161, issue C Abstract: In the blue economy start-ups play a critical role as they bring innovation, technology, and new business models, driving sustainable growth and development. However, blue start-ups also experience financing constraints and in this research, we evaluate the factors that drive their gearing ratio. Using a comprehensive sample of firms across twenty-seven EU member states between 2013 and 2020, we find a negative link between debt ratio and climatic and ocean disruptions. We also report a positive relationship between asset tangibility and gearing, while regulations have a negative influence on the choice of debt as the preferred mode of financing. Our findings also suggest that blue startups with more private equity, have a lower variation in their capital mix. Finally, the fundamentals play a favorable role to motivate the use of debt financing. These findings have important implications for blue start-ups and the related ecosystem. Keywords: Blue Economy; Startups; Gearing; Climate Change (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:161:y:2023:i:c:s0148296323001984 DOI: 10.1016/j.jbusres.2023.113840 Access Statistics for this article Journal of Business Research is currently edited by A. G. Woodside More articles in Journal of Business Research from Elsevier |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.