BRIOZZO Anahi Eugenia
congresos y reuniones científicas
A typology of SMEs financing decisions. Evidence from Argentina
ANAHÍ BRIOZZO; HERNÁN VIGIER
Ciudad de México
Congreso; X Internacional Finance Conference; 2010
We identify three distinctive cases in SME financing decisions: trade-off behavior, peckingorder behavior, and extreme aversion to debt. Considering the owner-firm intertwinement as a fundamentalcharacteristic of these firms, we include personal and firm-specific factors as explanatory variables for thesecases. We compare the implications of our approach with a dataset of firms from Bahía Blanca (Argentina)using the Multinomial Logistic Model. We find that personal factors such as owner s age and education, andperception of bankruptcy costs, as well as firm characteristics (firm age, legal form, growth, and profitability)are relevant variables to explain the small firm financing behavior.