How Theory Meets Practice: An Analysis of the Capital Structure of Spanish SMEs

Clara Cardone Riportella and Leonardo Cazorla Papis
Additional contact information
Leonardo Cazorla Papis: Universidad de AlmerÃa, Spain

Journal of Entrepreneurial Finance, 2006, vol. 11, issue 2, 73-94

Abstract: The article analyzes the factors determining the capital structure of the Spanish small and medium enterprises [SMEs]. The analysis is grounded on the agency theory, the signalling approach and the pecking order theory. In particular, the article provides a qualitative and quantitative analysis about the impact of company brand, the ownership and control structure, and the relationship between the SMEs and their own financial policy. This analysis is based on defining the expected relationships that one might consider between the referred variables and the total debt ratio. In this regard, the analysis will be conducted by means of considering a survey of 410 Spanish SMEs where an ANOVA test will be applied. Then, a hierarchical regression model will allow comparison of the hypotheses made.

Keywords: Capital Structure; Small Business; SME; Spain (search for similar items in EconPapers)
JEL-codes: G15 G32 M13 (search for similar items in EconPapers)
Date: 2006
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://jefsite.org/RePEc/pep/journl/jef-2006-11-2-e-riportella.pdf (application/pdf)

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:pep:journl:v:11:y:2006:i:2:p:73-94

Access Statistics for this article

More articles in Journal of Entrepreneurial Finance from Pepperdine University, Graziadio School of Business and Management Contact information at EDIRC.
Bibliographic data for series maintained by Craig Everett ().