A Probit Analysis of the Changes in the Financial Characteristics of Newly Quoted Small Firms, 1970-73 and 1980-83

Graham C Hall and Patrick J Hutchinson

Small Business Economics, 1993, vol. 5, issue 3, 207-14

Abstract: An important reason for the establishment of the U.K. Unlisted Securities Market was to provide capital for promising small firms. This paper makes two comparisons: (1) between selected financial characteristics of a sample of small firms that took advantage of this opportunity and a sample of firms that did not; and (2) between any differences in these characteristics and those between a sample of small firms that were floated on the Stock Market between 1970-73 and a sample of small firms that remained unfloated. Probit was employed. The results suggest floated firms were on average more profitable and faster growing, though with the latter relationship not particularly strong. There was little significant difference in gearing or liquidity. The owners of floated firms were prepared to take less remuneration than average during the 1970s but not during the 1980s. Copyright 1993 by Kluwer Academic Publishers

Date: 1993
References: Add references at CitEc
Citations: View citations in EconPapers (1)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kap:sbusec:v:5:y:1993:i:3:p:207-14

Ordering information: This journal article can be ordered from
http://www.springer. ... 29/journal/11187/PS2

Access Statistics for this article

Small Business Economics is currently edited by Zoltan J. Acs and David B. Audretsch

More articles in Small Business Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().