Financing of Entrepreneurial Firms in Canada: Some Patterns
Anton Miglo ()
Administrative Sciences, 2020, vol. 10, issue 3, 1-27
This article analyzes the patterns of financing for entrepreneurial firms in Canada. We compare the predictions of major theories of entrepreneurial finance and some more recent ideas (e.g., crowdfunding-related ideas/theories) with empirical evidence. Regression and correlation analyses were used to analyze the connections between firms’ financing choices (e.g., debt/equity ratio) and different variables such as firm age, firm owner origin, and the fraction of intangibles assets. We found strong evidence that the financing choices of entrepreneurial firms in Canada are consistent with flexibility theory and credit rationing theory. We did not find evidence that taxes play a significant role in explaining these choices. We also found that the likelihood of using crowdfunding is consistent with local bias ideas and internet access. We also provide an overview of literature related to entrepreneurial financing in Canada and discuss its major challenges and directions for future research.
Keywords: entrepreneurial finance in Canada; small business financing; capital structure; crowdfunding (search for similar items in EconPapers)
JEL-codes: M M0 M1 M10 M11 M12 M14 M15 M16 L (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:gam:jadmsc:v:10:y:2020:i:3:p:50-:d:395181
Access Statistics for this article
Administrative Sciences is currently edited by Dr. Robert G. DelCampo
More articles in Administrative Sciences from MDPI, Open Access Journal
Bibliographic data for series maintained by XML Conversion Team ().