Capital structure determinants in growth firms accessing venture funding
- Balboa Ramón, Marina
- Martí Pellón, José
- Tresierra Tanaka, Alvaro
ISSN: 1988-8767
Año de publicación: 2009
Número: 489
Tipo: Documento de Trabajo
Otras publicaciones en: Notas técnicas: [continuación de Documentos de Trabajo FUNCAS]
Resumen
This paper focuses on the capital structure determinants of venture capital backed firms prior to the venture capital investment event. The analyses are carried out on a matched sample of Spanish venture capital backed firms at the expansion stage and similar firms that did not receive venture funding. In the former, the results show that the structure of assets, size and growth opportunities have a positive impact on the debt ratio. Conversely, only profitability is negatively related to the leverage ratio in non venture capital backed firms. Overall, there is stronger evidence on the Pecking Order Theory for venture capital backed firms.