Determinants of the collateralization of credit by small firms

Heather M. Hulburt and Frederick C. Scherr
Additional contact information
Heather M. Hulburt: Department of Finance, College of Business and Economics, West Virginia University, Morgantown, WV 26506-6025, USA, Postal: Department of Finance, College of Business and Economics, West Virginia University, Morgantown, WV 26506-6025, USA
Frederick C. Scherr: Department of Finance, College of Business and Economics, West Virginia University, Morgantown, WV 26506-6025, USA, Postal: Department of Finance, College of Business and Economics, West Virginia University, Morgantown, WV 26506-6025, USA

Managerial and Decision Economics, 2003, vol. 24, issue 6-7, 483-501

Abstract: This study presents results of an empirical investigation of debt collateralization using samples of small firms. We examine the fraction of debt that is collateralized and find substantial support for firm size, firm age, and collateral quality as determinants of collateralization. Our results regarding firm size and age are different from prior research and may stem from basic financial differences between small and large firms. We find mixed support for growth opportunities and taxation and little support for default probability, regulation, and form of legal organization as determinants of collateralization. Copyright © 2003 John Wiley & Sons, Ltd.

Date: 2003
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://hdl.handle.net/10.1002/mde.1071 Link to full text; subscription required (text/html)

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:wly:mgtdec:v:24:y:2003:i:6-7:p:483-501

DOI: 10.1002/mde.1071

Access Statistics for this article

Managerial and Decision Economics is currently edited by Antony Dnes

More articles in Managerial and Decision Economics from John Wiley & Sons, Ltd.
Bibliographic data for series maintained by Wiley Content Delivery ().