Conference paper

Publication year: 2018

URL: https://efmaefm.org/0EFMAMEETINGS/EFMA%20ANNUAL%20MEETINGS/2019-Azores/papers/EFMA2019_0010_fullpaper.pdf

Conference: European Financial Management Association Annual Meeting

Abstract: 

We study the relationship between the capital structure and the performance of unlisted small and medium-sized firms in Germany. We employ a panel vector autoregressive model that allows to consider this relationship in a dynamic sense and accounts for potential endogeneity. While our results show that there is a strongly positive association between leverage and performance for medium- sized firms, we find no relation for small firms. This may be taken as evidence that small firms are unable to seize the performance-enhancing effects of higher leverage, thus refuting the tradeoff theory for this entrepreneurial size bracket.

Harvard Citation style: Bannier, C. and Heyden, T. (2018) The dynamics of SMEs' capital structure and performance: Evidence from a panel VAR, European Financial Management Association Annual Meeting, Ponta Delgada, Island of S. Miguel, Portugal, June 26-29, 2019. https://efmaefm.org/0EFMAMEETINGS/EFMA%20ANNUAL%20MEETINGS/2019-Azores/papers/EFMA2019_0010_fullpaper.pdf

APA Citation style: Bannier, C., & Heyden, T. (2018, June 26-29, 2019). The dynamics of SMEs' capital structure and performance: Evidence from a panel VAR. European Financial Management Association Annual Meeting, Ponta Delgada, Island of S. Miguel, Portugal. https://efmaefm.org/0EFMAMEETINGS/EFMA%20ANNUAL%20MEETINGS/2019-Azores/papers/EFMA2019_0010_fullpaper.pdf