Are small firms more sensitive to financial variables?

Segarra Blasco, Agustí, 1958- and Mercedes Teruel

Working Papers from Universitat Rovira i Virgili, Department of Economics

Abstract: This paper analyses the impact of different sources of finance on the growth of firms. sing panel data from Spanish manufacturing firms for the period 2000-2006, we investigate the effects of internal and external finances on firm growth. In particular, we examine wo dimensions of these financial sources: a) the performance of the firms' capital structure n accordance with firm size; b) the combined effect of equity, external debt and cash low n firm growth. We find that low-growth firms are sensitive to cash low and short-term ank debt, while high-growth firms are more sensitive to long-term debt. Furthermore, ur results show that low-growth firms are more sensitive to short-term financial variables, hile fast growth firms are more sensitive to long-term financial variables. EL codes: L25, R12. eywords: Finance, Firm growth, Quantile regressions, Small firms

Keywords: Empreses petites i mitjanes; Empreses -- Creixement; Empreses -- Finances; 332 - Economia regional i territorial. Economia del sòl i de la vivenda (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (1)

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