Innovation, asymmetric information and the capital structure of new firms

Jonathan Taglialatela and Andrea Mina

LEM Papers Series from Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy

Abstract: The paper focuses on the capital structure of firms in their early years of operation. Through the lens of Pecking Order Theory, we study how the pursuit of innovation influences the reliance of firms on different types of internal and external finance. Panel analyses of data on 7,394 German start-ups show that innovation activities are relevant predictors of the start-ups' revealed preferences for finance, and that the nature of these effects on the type and order of financing sources depends on the degree of information asymmetries specific to research and development activities, human capital endowments, and the market introduction of new products and processes.

Keywords: Innovation; information asymmetries; start-up; pecking order; entrepreneurial finance. (search for similar items in EconPapers)
Date: 2021-10-23
New Economics Papers: this item is included in nep-cfn, nep-cmp, nep-cse, nep-evo, nep-hme, nep-ino, nep-sbm and nep-tid
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.lem.sssup.it/WPLem/files/2021-36.pdf (application/pdf)

Related works:
Journal Article: Innovation, asymmetric information and the capital structure of new firms (2024)
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:ssa:lemwps:2021/36

Access Statistics for this paper

More papers in LEM Papers Series from Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy Contact information at EDIRC.
Bibliographic data for series maintained by (lem@sssup.it this e-mail address is bad, please contact repec@repec.org).