The paper aims to explore the effect of some characteristics of University Spin-Offs (USOs) on their capital structure. According to the trade-off theory and pecking order theory, it was hypothesized that the firm size, firm age and firm profitability have a determining role on the debt level of USOs. Based on a sample of 405 Italian USOs, the results suggest the firm size has a positive influence on the debt level of the USOs, while the firm profitability negatively affects their capital structure. Nevertheless, the firm age seems to have no effect on debt level of USOs. The paper offers some contributions on literature and extends the understanding of capital structure in USOs, revealing some implications for the financing dynamics of this type of venture
The effects of firm characteristics on capital structure of University Spin-Offs. Some new implications from their financing behaviour
Antonio Prencipe
2015-01-01
Abstract
The paper aims to explore the effect of some characteristics of University Spin-Offs (USOs) on their capital structure. According to the trade-off theory and pecking order theory, it was hypothesized that the firm size, firm age and firm profitability have a determining role on the debt level of USOs. Based on a sample of 405 Italian USOs, the results suggest the firm size has a positive influence on the debt level of the USOs, while the firm profitability negatively affects their capital structure. Nevertheless, the firm age seems to have no effect on debt level of USOs. The paper offers some contributions on literature and extends the understanding of capital structure in USOs, revealing some implications for the financing dynamics of this type of ventureI documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
