Publication
Title
The evolution of debt policies : new evidence from business startups
Author
Abstract
We investigate the evolution of entrepreneurial firms debt policies over a period of 15 years after startup, considering leverage, debt specialization, debt maturity and debt granularity. Our analysis is based on a unique sample covering all non-financial Belgian firms founded between 1996 and 1998. We find that the debt policy of entrepreneurial firms is remarkably stable over time. The debt policy in the initial year of operation is a very important determinant of future debt policies, even after controlling for traditional contemporaneous determinants. The founder-CEO has an important impact on the stability of debt policies: the influence of initial debt policies on future debt policies is significantly reduced when the founder-CEO is replaced or when (s)he dies. Combined, our findings support imprinting theory.
Language
English
Source (journal)
Journal of banking and finance. - Amsterdam
Publication
Amsterdam : 2016
ISSN
0378-4266
Volume/pages
65(2016), p. 120-133
ISI
000373552400008
Full text (Publisher's DOI)
Full text (open access)
The author-created version that incorporates referee comments and is the accepted for publication version Available from 02.02.2019
Full text (publisher's version - intranet only)
UAntwerpen
Faculty/Department
Research group
Publication type
Subject
Affiliation
Publications with a UAntwerp address
External links
Web of Science
Record
Identification
Creation 18.03.2016
Last edited 07.12.2017
To cite this reference