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date: 25 February 2020

(p. 893) Index of Names

(p. 893) Index of Names

Abel, A. B.
future technology, 504, 506, 512
valuation model, 496, 503, 514, 517, 521
Accion International, 870, 876
accounts receivable. See factoring; invoice financing
Achleitner, Ann-Kristin, 3, 200, 201, 202, 203
Active Capital, 417
Adams, Dale W., 791 table 25.1, 811, 871
adverse selection, 13, 275
and the probability of default, 299n. 31
and trusting information by the borrower, 344
as an example of information asymmetry, 446
asset-based lending and, 619, 621
creating agency costs, 615
credit rationing and, 351
firm confidentiality exacerbating, 447
higher loan prices and, 344, 450
IPOs affected by, 411
lemon’s problem, 873
market imperfections as, 272
mitigating factors
good credit rating, 757, 761
joint liability, 829
secured lending, 616
signaling, 617
venture capital specialized teams, 458
private equity mechanisms to solve, 38
principal-agent problems, 134
relationship between cash flow and investment with, 256
R & D spending and, 660
trade credit and, 531, 532
agency, 62, 63, 139
costs, 170, 197, 204, 273, 407, 608, 615, 617, 675, 799
problems, 62, 128, 168, 200, 273, 350, 355, 406, 408, 620, 551n. 11, 564, 637, 638, 639–657, 673, 674, 680n. 16, 813
theory, 12, 15, 139, 172, 188, 794, 795, 807
Aggarwal, Rajesh K., 475, 496, 500 table 16.1, 793 table 25.1, 812, 813
Aghion, Philippe, 12, 83, 440, 441, 642 table 21.1, 656
agricultural industry, 95n. 3, 96n. 18, 696, 808, 836
Ahlin, Christian, 812, 829, 830, 844 table 26.3, 845 table 26.3, 862 table 27.1, 877, 878
microfinancing, 812, 830, 845 table 26.3
social cohesion and repayment rates, 829, 844 table 26.3, 862, 877–878
Ahlstrom, David, 781, 787 table 25.1, 789 table 25.1, 796, 805, 806, 810
social cohesion and repayment rates, 829, 844 table 26.3, 862, 877–878
public stock exchanges, 810
venture capital models, 789
Ajayi-Obe, O., 50, 55, 56, 70, 85, 86, 96n. 16
British Household Panel Survey, 55, 96 n. 16
entrepreneurs, 56, 70, 85, 86
self-selection, 50
Akerlof’s lemon problem, 873
Alba-Ramirez, Alfonso, 46, 56, 70, 90
Alegria, Carlos, 352, 356 table 11.4
AlphaZirkel, 205
Alsos, Gry Agnete, 732 table 23.1, 745, 749
American Motors, 22
American Research & Development Corporation, 30
American Stock Exchange, 40n. 10, 113
Amit, Raffael, 46, 90, 135, 171, 176, 185, 189n. 9
Ampenberger, Markus, 3, 172, 174 table 6.1, 175, 178
Anderson, Ronald, 172, 173 table 6.1
Ang, James S., 343, 344, 361n. 2, 473, 486, 562 table 18.1, 564
asymmetric information
banking, 344, 361n. 2
SMEs, 343, 564
growth opportunities, 562 table 18.1
IPOs, 473, 486
Angel Capital Association, 399
Angel Capital Education Foundation, 399
angel investment, 1, 4, 10, 18, 20, 22, 28, 29, 32, 10, 138, 141, 154, 257, 369, 370, 377, 379, 392–422, 447, 448, 561
accredited angels, 394, 420
and comparative advantage, 401
and expected returns, 395, 411–420
choice of entrepreneurs to fund, 405–406
definition of, 392–393
exiting, 409–410, 410 table 13.2, 411
four-hour rule, 404
groups, 399, 400–401, 405, 406
investment process, 402, 406–409
investment returns, 393 Fig. 13.1
minority investors, 715n. 3
notable angel investments, 294
studies of, 396–398 table 13.1
Angel Investor Performance Project (AIPP), 409, 410, 413, 416 (p. 894)
Anna, Alexandra L., 721 table 23.1, 737, 738, 747, 749
ARD, 460n. 9
Argentina, 778, 779
entrepreneurs in, 798, 800, 802, 805, 813, 815
IPOs in, 474
submerging markets in, 800
venture capital in, 805
Armed Forces Qualifying Test (AFQT), 68 Fig. 2.5, 97n. 25, 99n. 44
Armed Service Vocational Aptitude Battery (ASVAB), 84, 99n. 48, 100n. 52
Armendariz de Aghion, Beatriz
group lending theory, 862 table 27.1, 876, 877
entrepreneurial finance in weak institutional environments, 791 table 25.1, 826
microenterprises, 811
step-wise increases in short-duration microloans, 878
Åstebro, Thomas, 94n. 1
entrepreneurs
ability of, 84, 297n. 12
compared to wage workers, 70
education and, 99n. 46, 693
factors of entry, 71, 74, 93
financing of, 715n.2
human capital, 83, 264, 265, 295 table 9.3
job hoppers, 89
optimism of, 76, 77
returns to, 2, 66, 67, 83, 264, 265, 295 table 9.3
risk aversion of, 125
wealthy, 78, 297n.13
investor’s returns, 60, 61, 114
patent-holders, 56
Aston Business School, 267, 276, 277, 287, 290 table 9.3, 299n. 33
financial search theory, 257
asymmetric information. See information asymmetry
Audretsch, David B., 10, 454 table 14.2, 455
Auerbach, Alan J., 637, 662, 680n. 16
Austin, Gareth, 783, table 25.1, 784 table 25.1, 799, 800, 808
Australia
earnings in, 59
Innovation Investment Fund, 669
women-owned businesses in, 740
Austria
firm growth rates, 432
manufacturing firms, 428 Fig. 14.1
tradition, 14
Schumpeter in, 445
service firms, 428 Fig. 14.1, 431
theory of entrepreneurship, 439
venture capital in, 452, 456
automobile industry, 22–26
aviation industry, 27, 38
Ayyagari, Meghana, 138, 757, 760 table 24.1
Banco Solidario, Bolivia, 811
Banergee, Abhijit, 829, 832, 838, 884
Bangladesh
microfinance in, 811, 827, 829, 831, 835, 836
private savings in, 803
Bank of America, 621
Bank of England, 283, 284, 295 table 9.3
Bank Rakyat Indonesia
microlending, 811
bankruptcy, business
and debt ratio, 189n. 6
and entrepreneurs, 671, 672
and factoring, 571, 575
and family firms, 169, 186
and hedge fund lenders, 629, 630
and optimal capital structure, 470
and project finance loans, 580, 591
and secured loans, 616
and trade credit, 541, 542, 543
and venture capitalist investment, 386, 453
filing for, 46, 186
law, 679n. 11, 762, 680n. 14
risk of, 169
bankruptcy, personal, 319, 326, 331
banks
and factoring, 570, 574 table 18.2
and flight to quality, 255, 281, 288, 289
and monopoly power, 355
competition among, 352–353, 360, 762
deregulation of, 155, 156
E-banking, 361
failure of, 309
financing. See financing, bank
lending. See financing, bankSee also factoring; microbanks
Bannerjee, Abhijit, 803, 850 table 26.3, 861 table 27.1, 863 table 27.1, 870
Bartov, E., 500 table 16.1, 501, 506, 517
Bates, Timothy, 687, 690, 691, 692, 693
Beck, Thorsten, 675, 761, 785 table 25.1, 804, 869
credit market condition, 352, 355
financing constraints, 641–642 table 21.1, 653 table 21.1
disparity in, 655
financing of new firms
banks, 138
pecking order theory, 139
trade credit, 528
Becker, G. S., 63, 81, 99n. 47, 692, 735 table 23.1
Becker hypothesis, 884
Beer Bankroll, 379
Belgium
and venture capital financing, 453
technology firms, 447
women-owned businesses, 744
belief cascade, 36
Bellflamme, Paul, 369, 371, 374, 378, 380, 380
Bennedsen, Morten, 170, 171, 175, 176, 178, 189
family firms, 167 (p. 895)
Benz, Matthias, 74, 75, 76, 114
Berger, Allen N.
asset-based finance, 613
asymmetric information, summary of studies, 346 table 11.2, 616
availability of capital, 458
availability of credit, 308, 339, 340, 341, 343, 756
bank financing decisions, 136, 139
capital structure changes of firms, 447
efficiency of owner-manager firms, 378
financing constraints, summary of findings, 290 table 9.3
fixed-rate secured loans, 617
funding gaps, 255
IPO, implementation cost of, 379
macroeconomic conditions and small business, 379
microbanks
advantage of, 885
size of, 881
owner’s personal assets used as collateral, 770
relationship lending, 344, 346 table 11.2, 350, 360
small business dependence on bank finance, 164
small business finance, 11, 135, 137, 153, 256, 375, 760 table 24.1
sorting-by-observed-risk (SBOR) paradigm, 351
sources of finance, 758
stickiness of loan rates, 261, 262
trade credit and young firms, 528, 544
Bernhardt, E., 264, 265, 295 table 9.3, 297nn. 12, 13
Bernhardt, Irwin, 50, 59, 60, 78, 84, 88, 99n. 46, 693, 715n. 2
Besley, Timothy, 829, 861 table 27.1, 876
Bester, Helmut, 343, 351, 361
Bhidé, Amar V., 369, 375, 379, 782 table 25.1, 798, 802
entrepreneurs
and preparation of business plan, 238, 239
sources and types of financing, 134
BHPS, 69, 97n. 21
Biais, Bruno, 532, 534, 543, 545
bio-technology companies, 114, 141, 286–287, 297n. 1, 300n. 35, 779
IPO and acquisitions of, 17 Fig. 1.1
venture capital and, 31, 32
Bitler, Marianne P., 116, 137, 308, 309
Black, Bernard S., 16, 39n. 2, 473
Black, Sandra E., 133–138, 155, 379, 762, 805
Blanchflower, David G., 298nn. 16, 19, 688, 692, 702, 703, 715n. 1
credit availability, 308
racial disparity in, 340
credit rationing
questioning the Evans and Jovanovic result, 264
entrepreneurial choice, 47
increase in, in United Kingdom, 56
increasing with age, 75
tied to inheritance, 267
tied to initial wealth, 116
entrepreneurs
characteristics of, 95n. 8
education of, 97n. 24, 99n. 43
earnings of
in United Kingdom, 60
job satisfaction of, 74, 98n. 35, 114
women as, 85
financing constraints, summary of findings, 292 table 9.3
self-employed, nonincorporated, 94n. 2
Board of Governors of the Federal Reserve System, 688
Boden, Richard J., Jr., 722 table 23.1, 732 table 23.1, 737, 745, 747
Boeing, 27
Boeker, 397 table 13.1, 399, 413, 421n. 3
Bolivia
Banco Sol, 879
microfinance in, 829, 831
NGO Prodem, 879
Bolton, Patrick, 255, 298n. 21, 877
Bolton Committee 298n. 21
bonds, 18–19, 24
corporate, 169, 172
mortgage, 20
Sterling-dominated, 19
Zero Coupon, 284 See also Liberty Bonds
Boot, Arnoud, W. A., 353, 360, 580
bootstrapping, 22, 369, 375, 376, 802
borrower, denied, See financing, bank, denied by
borrower, discouraged, See financing, bank, denied by
Bosma, Niels, 797, 798, 802, 814, 815
Bosnia-Herzegovina
business and financial literacy training in, 842
starting a business in, 757
Botswana, 805
business incubators in, 810
Bottazzi, G., 428, 429, 431, 453, 454 table 14.2
Bottazzi, Laura, 137, 377, 379
Brabham, Daren C., 371, 372, 374, 375
Bracker, Jeffrey, 237, 240, 244 table 8.2
Bradford, William D., 77, 87, 688
Bradley, D. J., 476, 477, 481
Brau, James C., 481, 483, 485, 486, 491, 811
entrepreneurial finance in weak institutional environments, 789 table 25.1
IPO motivation questions, 468, 487–489 table 15.2, 471–479
Brazil
angel financing in, 804
entrepreneurial finance in, 814
indigenous banking in, 799
informal investment in, 805
IPOs, 478
microfinance in, 868, 870
private equity opportunities in, 798
venture capital in, 807 See also Accion International (p. 896)
Brennan, Michael J., 475, 530, 534, 541, 550nn. 4, 5
Brinckmann, Jan, 240, 241 table 8.1
data sources, 242–245 table 8.2
Briscoe-Maxwell Company, 23
Britain. See United Kingdom
British General Household Panel Survey, 55, 96n. 16, 120
Brownian motion, 280
Bruhn, Miriam, 5, 67, 837, 839, 842, 850 table 26.3
Brush, Candida G., 719, 742, 746, 747, 748, 749
women-owned firms, financing of, summary of articles, 734 table 23.1
Brush Electric Company, 20
regional subsidiaries of, 21
Bruton, Garry D., 781, 789 table 25.1, 805, 806, 810
bubbles, 10, 24, 444
bucket shops, 26, 40n. 14
Buckley, Patricia, 687, 693, 715n. 5
Buick Company, 25
Burkhart, 534, 546, 551n. 11, 557
Burma, entrepreneurs in, 800
Business Cycles, 460n. 13
business activity, emerging, 10–15, 17, 773
challenges to, 777–823, 816n. 5
“giants” in, 778
institutional theory and,
Stanford Project on Emerging Companies, 457
business
environment, 246, 439, 761, 762, 763, 770 table 24.2, 773
four aspects of, 769
funding. See financing
models of crowdfunded ventures, 380–381
planning. See planning
taxation. See taxation
Business Week CEO 1000, 171
Buttner, E. Holly, 722 table 23.1, 737, 747
BuzzMoney. See Media No Mad
Bygrave, William D., 416, 421n. 9, 784 table 25.1, 802, 804, 812
angel investing, 392
expected returns, 411
summary of studies, 396 table 13.1
business plans, effectiveness of, 240
Cable, 794
Cagetti, Marco, 77, 116, 133
Calomiris, Charles W., 547, 644 table 21.1, 657
Cambridge Centre for Business Research, 279
Canada, 114, 300n. 44
earnings in, 59, 60
factoring in 573
invoice financing in, 573
Labour-Sponsored Venture Capital Corporation, 669
underreporting of net income by entrepreneurs, 69, 93, 95n. 6
women-owned businesses in, 741, 743, 744, 746
Canadian Innovation Centre (CIC), 56
capital
access to, 133–166, 755–756
asset pricing model (CAPM), 470
cost of, 762
financial, 687–717, 687
for entrepreneurial firms, 133, 270–271, 270 Fig. 9.5, 270–271, 270 Fig. 9.5
gaps, 1
human, 265, 266, 687, 693
markets. See markets, capital
share, 20
social, 687
sources of, 758
structure, 139–140, 153–189, 153, 167–190, 310, 469, 470
and new firm formation, 808 table 25.3
optimal, 469, 470
puzzle, 189
weighted average cost of (WACC), 470 See also SMEs, capital structure of
Capital Taxes Group of the Institute for Fiscal Studies, 662
Capitalism, Socialism and Democracy, 460n. 13
CARE, 871
Carpena, Fenella, 5, 829, 841
Carpenter, Robert E., 83, 447, 644 table 21.1, 657, 757, 759 table 24.1
high-tech firms
IPOs, 136, 137
Carroll, G. R., 437, 438, 459n. 2
Carter, Nancy M., 245 table 8.2, 737, 739, 741, 746, 748
women-owned firms, financing of, 722 table 23.1, 725 table 23.1, 735 table 23.1
Carter, Sara, 729 table 23.1, 731 table 23.1, 743, 744
Caselli, Stefano, 4, 582 table 19.1, 593, 606 Fig. 19.5, 609n. 2
cash flow. See financing, cash flow
cash holding, 342, 355, 360
Cavalluzo, Kenneth S., 340, 688, 692, 702, 703
Cavalluzo, Linda S., 340, 688, 690, 692, 702, 703
Caves, R. E., 426, 428, 429, 430
Center for Research in Security Prices (CRSP), 113
Center for Venture Research. See University of New Hampshire
Cetorelli, Nicola, 155, 342, 353, 360
Chaganti, Rajeswararao, 733 table 23.1, 745, 749
Chandler, Alfred D., Jr., 12, 19, 38
Characteristics of Business Owners (CBO), 86, 690, 691, 693, 738
Chase Manhattan bank, 445
Chavis, Larry, 4, 757, 761, 767
Chetty, Raj, 652 table 21.1, 673, 674
Chevrolet, 24
Chile (p. 897)
microfinance in, 829
necessary start-up capital requirement, 798
venture capital in, 805, 807
China, 816n. 7
and firm governance, 795
angel financing in, 804
bank financing in, 757
business incubators, 810
entrepreneurial finance in, 781, 812, 813
financing constraints in, 757
indigenous banking in, 799
IPOs in, 474
microfinance in, 829
new companies in, 777
private equity opportunities in, 798
Singapore, venture capital companies, 455
venture capital in, 796, 805, 806, 807, 813
Chrysler Motor Car Company, 40n. 11
Christensen, Clayton M., 233, 237, 886n. 2
Clark, Jim, 467–468, 480
Clark, K., 47, 56, 59, 88
Claessens, Stijn, 167, 170, 195, 781
Cliff, Jennifer E., 721 table 23.1, 737, 747, 749
Coad, A., 430, 432, 433, 434, 437, 459n.1
firm growth, 426
Coate, Stephen, 829, 861 table 27.1, 876
Coasian view, 795
Cobb-Douglas production function, 72, 97n. 32, 441
Cochrane, John H., 300n. 36, 396 table 13.1, 399, 413, 416, 421n. 8
IPOs, 16
venture capital investments, low returns to, volatility of, 113, 114
Cole, Rebel A., 339, 343, 344, 729 table 23.1, 842, 853 table 26.3
bank loans
high-tech firms and, 139
racial disparity in, 165, 319
SMEs
availability of credit to, 308–309, 313, 320, 332, 337
capital structure of, 310–312
Coleman, Susan, 740, 741, 744, 745, 748, 749
family firms
financing decisions, 193
silent partnerships, 203
minority firms, disparity in bank loans, 340, 692
women-owned firms, summary of articles, 727 table 23.1, 730 table 23.1, 733 table 23.1
collateral
asset-based, 154, 156, 182, 273, 447, 529, 613–622, 623–632, 771
and group loans, 828, 884
and information asymmetry, 275, 299n. 29, 355, 369
and microfinance loans, 860, 875, 876, 877, 880, 884
models, 828
overview, 826
and signaling, 260, 361n. 3
bank requirements, 772 Fig. 24.7, 803
bearing lower risk because of, 375, 595–596
compared to VC financing, 136, 139, 352, 377
compulsory savings in microfinance as, 829
credit constraints and, 446, 741, 742, 744, 748
credit rationing and, 260–271, 532
creditor seizure of, 655
firm age and, 764, 770, 770, 771
established firms and, 762
informal or group, 871
in WIEs, 803
lack of and microcredit, 811, 834, 859
liquidating, 533–535
microcredit and, 825, 826, 834, 859, 860, 875–877
notional value and, 829
personal property as, 671, 672, 688, 689, 690, 713
project finance and, 580, 584, 589
relationship lending and, 340, 343
SMEs and, 561, 571, 756
sorting-by-observed-risk paradigm, 351
source of, 771 Fig. 24.6
trade credit and, 542–549, 572
types of, 764
competition among banks, 360–361
COMPUSTAT, 163, 508, 522n. 9
computer hardware industry, 141
computer software industry, 141
Concentration Index (CCRn), 352
Congo Free State, 780
Consolidated, 27
Constantinidis, Christina, 731 table 23.1, 744, 748
contracting, financial, 1
control considerations, 172, 180, 196, 268–269, 269 Fig. 9.4
Cooper, Arnold C., 396 table 13.l, 402, 419, 420, 724 table 23.1, 739
Corielli, Francesco, 578, 582 table 19.1, 583, 584, 589
corporate governance. See governance, corporate
Cosh, Andrew, 297n 5, 679n. 9, 755, 758, 759 table 24.1, 763
businesses’ abilities to meet objectives, 280 Fig. 9.7
debt-to-capital ratio, British firms, 164
external finance, United Kingdom firms, 117
financial
constraints, summary of literature, 295 table 9.3, 296 table 9.3
search theory, 257, 287
multiple sources for each type of finance, 277
high-tech firms, information asymmetry and, 139
pecking order theory, 278, 565
SMEs
capital structure, 563 table 18.1
performance comparisons, 279
shortage of lending, 255
start-ups
attracting capital, 369 (p. 898)
use of debt, 162, 163, 164 table 5.4
Costa Rica, microfinance in, 829
costly state verification problem, 873
Côte d’Ivoire, trade credit in, 804
Cotler, Pablo, 836, 837, 839, 850 table 26.3
cover ratios, 597, 602–604, 606
Cramer, Jan S., 76, 121, 123, 124
Crash of 1929, 28
credit
constraints, 118–119 table 3.3, 128, 267, 298n. 17, 425
cost of, 471, 537–539
markets, 2, 3
rationing, 260–271, 263 Fig. 9.2, 275, 276, 280, 343, 344, 351, 531, 542, 558, 656
trade, 310, 312, 526–556, 527 Fig. 17.2, 550n. 1
and entrepreneurial finance, 528 Fig. 17.2, 543–550, 757–758
and firm age, 544 Fig. 17.4, 765 Fig. 24.2
and the business cycle, 548, 758
as a way to foster sales, 547
as relationship lending, 545–546
contracts, 535–543
flexibility, 539–540
literature survey, 529–535
replacing bank credit, 757–758
seniority of, 541–543
terms of, 536 fig., 17.3 3, 537 table 17.1, 538 table 17.2
Credit Suisse Group, 628
Cressy, Robert, 267, 297nn. 1, 2, 5, 298n. 21, 299n. 22, 300nn. 35, 45, 426
bio-tech sector, United Kingdom, 257
credit
constraints, 116, 256
and failure of small firms, 262
market, asymmetry of, 275
debt constraints, Swedish small firms, 276
entrepreneur, control aversion of, 268
equity gaps, United Kingdom, 282, 284, 286
failure curve, 271
smaller, younger firms, and failure, 272
financing constraints, summary of findings, 292 table 9.3, 293 table 9.3, 294 table 9.3, 295 table 9.3, 296 table 9.3
human capital, true constraint on business survival, 265
questioning the Evans and Jovanovic Result, 264
SMEs
funding gaps, 255
information asymmetry favoring financiers, 260
start-ups, finance sources used in combination, 277
crowdfunding. See financing, entrepreneurial
crowdsourcing. See financing, entrepreneurial
Cull, Robert, 830, 845 table 26.3, 846 table 26.3, 861 table 27.1, 864 table 27.1, 886n. 3
Cullen, Julie Berry, 125, 650 table 21.1, 672
Cumming, Douglas J., 297n. 5, 453, 460n. 14, 460n. 20, 667, 680n. 14
angel investors
and overvalue of nonexited projects, 415
summary of studies, 396 table 13.1
debt
as financing for startups, 162, 163
-to-capital ratio in United Kingdom, 164
financing constraints, 646–648 table 21.1
venture capital
exit evidence, 411
financing facilitated by cross-country differences in the legal environment, 679n. 11
funds supported with public money, 669
returns, volatility of, 113
venture capitalists
and action before and after IPOs, 39n. 4
and market doldrums, 16
Cuñat, Vicente, 535, 539, 540, 544, 545, 556
trade credit, 528
suppliers control actions of borrowers, 532, 534
Czech Republic, 778
Current Population Survey (CPS), 55, 95n. 8, 689, 693
Curtiss-Robertson Airplane Manufacturing Company, 27
Czarnitzki, Dirk, 378, 646 table 21.1, 665
Daley-Harris (2009) Microcredit Summit Report, 865
Daley-Harris, Sam, 831, 875, 886n. 3
David, Paul A., 522n. 4, 665, 880
debt, 167–190, 377, 447
access to, 265–304
angel investment and, 406–407, 416
automobile industry and, 24, 25
becoming too expensive, 486–490
capital structure and, 139–140, 154, 597
family firms and, 168–172
Danish, 180 Fig. 6.3, 182 Fig. 6.5, 183 figs. 6.6, 6.7, 184 Fig. 6.8, 195 Fig. 6.9, 186 Fig. 6.10
growth goal and, 203
independence of, 198
leverage evolution from, 187 Fig. 6.11
retained earnings in, 199, 214
compared to equity, 10, 11–15, 188, 189n. 6, 201, 387
historically, 18
in financing new ventures, 133, 134, 135–136
compared to venture capital financing, 136
convertible, 631
cost of, 471
cover ratios, 602–604
crowdfunding and, 386 (p. 899)
dilution of, 617, 627
entrepreneurs and, 127, 145–146, 376 table 12.2, 377
external, 712 table 22.9, 714 table 22.10, 723
hedge funds and, 622
high-tech firms and, 136, 137, 141–142, 140 table 4.1, 144
importance of, 39, 154, 155
initial public offering and, 469–491, 503–506
long-term, 138, 547
mezzanine capital and, 202, 629
mortgage, 127
NLSY data showing, 97n. 31
project finance and, 580, 607–608, 610n. 5
railroad financing and, 20
ratio, 127–128, 129n. 2, 171, 448, 601, 602, 612, 696
refinancing, 628
repayment of
absence of track record of, 529, 761
and entrepreneur’s compensation, 658, 659
asset-based finance and, 613–614, 618
creditor protection and, 655
financially constrained firms and, 638
Grameen Bank’s group lending model and, 828
group lending technology and, 811, 834, 839, 860, 884
having written rules for, 829
maturity reduction and, 606
microfinancing and, 811, 826, 831, 840–843, 874–878, 881, 885
operating cash flow and, 599, 604, 656
subsidized rural credit and, 871
trade credit and, 539, 545
venture capital financing and, 668
women’s track record with, 875
short-term, 76, 138, 527–528, 536, 543
Small Business Administration Studies and, 310–311
small businesses financed by until 1998, 11
SMEs and, 564, 565
start-up financing decisions, 156–165, 164 table 5.4
Sterling debt issues, 19
-to-equity conversions, 629
-to-equity mix, 145, 167, 178, 470, 483, 589, 597
trade credit and, 340, 526, 541, 545
used by start-up firms, 758 See also microfinance, repayment requirements
DeGennaro, Ramon P., 4, 394, 409, 410, 413, 416
Degryse, Hans, 350, 353, 355, 360, 614, 631
credit market concentration and small business, 342
De Mel, Suresh, 834, 836, 847 table 26.3
Demers, E., 475, 476, 501
de Meza, David, 3, 11, 13, 261, 290 table 9.3, 297n. 9, 298nn. 14, 15, 350
Demirgüc-Kunt, Asli, 651 table 21.1, 757, 759 table 24.1, 785 table 25.1, 804
credit market conditions affecting small business, 352, 355
corporate form
affected by a country’s legal system and institutions, 171, 672
Democratic Republic of Congo, 778
De Nardi, Mariacristina, 77, 115, 133
Denis, David J., 10, 165, 588, 756
Denmark, 3, 164, 171, 189, 276
capital structure of family firms in, 175–177, 179 Fig. 6.2, 180 Fig. 6.3, 182 Fig. 6.5, 184 Fig. 6.8, 188
in different industries, 186 Fig. 6.10
old, middle-aged, young, and entrepreneurial, 184 Fig. 6.8
size of, 183 Fig. 6.6
types of, 181 Fig. 6.4
capital structure of non-family firms in, 179 Fig. 6.2, 180 Fig. 6.3, 188
in different industries, 186 Fig. 6.10
old, middle-aged, young, and entrepreneurial, 185 Fig. 6.9
size of, 183 Fig. 6.7
Danish Civil Registration System, 176
Danish Commerce and Companies Agency, 176
Købmandsstandens Oplysningsbureau (KOB), 176
leverage evolution from family firms to non-family firms, 187 Fig. 6.11, 188
Ministry of Economics and Business Affairs, 176
semi-two-tier board system of, 175
Skat (Danish Tax and Customs Administration), 179
tax policy, 179
Denslow, Diane, 728 table 23.1, 730 table 23.1, 742, 744, 748
Department of Labor
“Prudent Man” provision, 31
Diana Project, 749
discounting, 1, 4
dividends, 18, 25
Dodge brothers, 25
Doing Business, 767
Dominican Republic, 47
Doriot, General Georges, 30, 445, 460n. 10
Dossani, Rafiq, 788, table 25.1, 805, 806
Douglas aircraft, 27
Dow Jones Broad Tape, 480
Drinkwater, S., 47, 56, 59, 88
Drucker, Peter F., 238, 239, 240
Dunn & Bradstreet, 773n. 1
Dunn & Bradstreet Corporation, 307
Dunn, Thomas A., 164, 694, 715n. 1
Dushnitsky, Gary, 13, 76, 138, 809, 809, 810
Dwyer, Gerald P., 409, 410, 413, 416
EAD measure, 77
Earle, John S., 56, 60, 715n. 1
earnings, retained (p. 900)
family firms and, 169, 197, 193, 198–200, 207
pecking order hypothesis and, 447, 472, 479, 482, 680n. 16, 699
start-up firms and, 757, 762, 773, 802
use of, 205–206 table 7.1, 208 table 7.2, 209–214, 212–213 table 7.4, 220, 221 table 7.7
woman-owned businesses and, 739, 748
East Germany, 97n. 22
Eberly, J. C., 496, 503, 504, 506, 514, 517
economies
developing, 777
emerging, 777
informal, 832
Ecuador, microcredit banks in, 868
Edison, 20
Egger, Peter, 649 table 21.1, 672, 675, 679n. 13
Egypt, 47
indigenous banking in, 799
Eisenhardt, Kathleen M., 15, 233, 795
EIM Business and Policy Research, 560, 561 table 18.1
Electric Carriage and Wagon Company, 23
Electric Lighting Act of 1882 (England), 21, 40n. 7
Electric Vehicle Company, 23
Electrician, The, 21
electrification industry, 20–21
Electronics Capital Corporation, 30
Elliehausen, Gregory E., 308, 309, 533, 534, 544, 554
Ellingsen, Tore, 532, 535, 551n. 11
Emery, Gary W., 530, 550n. 4, 563 table 18.1, 567
Engel, D., 454 table 14.2, 455, 456
entrepreneurial choice, 45, 46, 47
ability and, 83–85, 91–93, 98n. 33, 100n. 52, 276 Fig. 9.3, 297n. 12
agency, 62, 63, 65
and job hopping, 88–90, 94
and the highly educated, 81–82, 94, 98nn. 40, 42, 99n. 43
capital structure, 153–189, 270–271, 270 Fig. 9.5, 272 Fig. 9.6
credit constraints, 82–83, 118–119, table 3.3, 121
decreasing absolute risk aversion (DARA), 268
education, 99n. 47
ethnicity and, 86–88, 96n. 12, 99n. 49
financing, 141–146, 155–165, 159 table 5.1, 161 table 5.2, 163 table 5.3, 755–775
financial decisions, 157 Fig. 5.1, 158 Fig. 5.2
gender and, 85–86, 95n. 4, 96n. 14, 97n. 19
human capital investment, 62–69, 71, 78, 79–83, 91, 115
immigrants and, 98n. 39
incorporation/organizational choice, 144, 670–672
learning models, 62, 65, 68
matching models, 62, 65
related to earnings potential, 50
return to education, 80–81, 82
risk attitudes and, 117–132, 268
screening, 62, 63
social capital return, 98n. 39
superstar models, 62, 65, 66, 67, 95n. 8
entrepreneurial finance. See financing, entrepreneurial
entrepreneurs
and comparative advantage, 71, 72, 403
and control aversions, 268–269, 269 Fig. 9.4
and deciding to become entrepreneurs, 109
and expected returns, 124
and flat earnings profile, 62–73, 91
and job satisfaction, 98n. 35, 114
and risk aversion, 78, 116, 117–132, 120 Fig. 3.1, 126
and underreporting of net income, 69–70, 93, 97n. 27
as optimists, 76, 297n. 9, 298n. 15, 361, 402, 419, 445
business experience of, 265
career history of, 67, 92
characteristics of, 142 table 4.2, 157
coming from upper and lower ends of wage distribution, 67
credit constraints of, 115, 116, 118–119 table 3.3, 255–304, 756
earnings of, 51 Fig. 2.2, 52, 53, 62
inheritance and, 116, 118–119 table 3.3, 267, 298nn. 16, 18, 762, 802
initial capital and, 270–171, 170 Fig. 9.5
numbers of people who want to be, 75, 93
personal traits of, 267, 403
portfolio compositions, 112 table 3.1
wealth accumulation of, 77–79, 265, 266 Fig. 9.3 See also risk
entrepreneurship
and rapid technological change, 65–66
and fringe benefits, 71
and work satisfaction, 74
comparison between industrialized world and developing countries, 47
decline in, 47
encouraging growth, 153
meaning of, 440 table 13.1
non-pecuniary benefits, 109, 114, 115
portfolio choice, 108, 127, 128
preference for, 74, 9 117–132
risks and returns, 45–108, 268
returns to capital, 72–73 See also Schumpeterian entrepreneurship
equity, 10, 11, 40 table 4.1, 156, 167–190, 377
advantages of, 12–15
debt and, 11, 135–136
legal issues, 379–380
markets, 19
outside, shortages of, 255
private, 34, 38, 109–132, 418, 419–420
and decision to issue an IPO, 486–500
and moral hazard and adverse selection problems, 38
and pension funds, 31
and public markets, 15–17, 32, 36 (p. 901)
and the premium puzzle, 2, 109, 110–117, 113 table 3.2, 125, 128
angel investors and, 756
boom and bust cycles of, 38
family firms and, 167–190, 197, 200–202, 214–217, 220, 221
for minority markets, 691
funds, 2, 415, 469, 473
related to risk attitudes, 126 Fig. 3.2
investors, 15, 37, 453
logistic regression and, 215–216 table 7.5
use of, 200–202, 205 table 7.1, 215–216 table 7.5
venture capital and, 154, 797–801, 798 table 25.2, 813, 756
public, 97n. 23, 109, 169, 470, 471, 479
benchmark, 113
premium puzzle, 110
returns, 113 table 3.2, 115, 418, 419
railroad industry and, 20
stakes, 13
start-up firms and, 10, 133, 134 See also financing, equity-based; private equity
Erie Canal, 38, 256
Esty, Benjamin C., 584, 585, 588, 593, 602
Ethiopia, microfinance in, 829
European Bank for Reconstruction and Development, 801
European Commission, 585, 601
European Private Equity and Venture Capital Association, 452
Eurostat, 585
Evans, David S., 299n. 27, 427, 715n. 1
entrepreneurs
borrowing power limiting entry, 133
characteristics of, 46, 84, 88, 89, 90
deciding to
choose self-employment based on wealth, 116, 268
remain in business or choose wage work, 262–265
earnings of, 96n. 10
education levels of, 95n. 8
finance
constraints and, 116, 139, 270, 276, 290 table 9.3
gaps and, 273
initial capital
increasing survival chances, 271
learning experiment for, 275
human capital, 65, 82
start-ups
and early failure, 272
retaining earnings, 73, 83
returns to, 52, 53, 63, 79, 83
time spent as, 99n. 50
venture capital and excess return, 460n. 16
Evans and Jovanovic Model, 262–265, 263 Fig. 9.2, 268, 270, 271, 299n. 27
questioning of, 264–267, 273, 275, 276, 297nn. 7, 10
Everitt-Metzger-Flanders Company, 24
Fabbri, Daniela, 532, 533, 547, 557
Fabowale, Lola, 728 table 23.1, 743, 748
factoring, 1, 4, 558–576, 561–563 table 18.1, 568–573, 804
choice to use, 573–575
and invoice discounting compared to bank loans, 574 table 18.2
growth of, 569–570
process of, 570–572, 571 Fig. 18.1
Factors Chain International, 570, 571
Fairlie, Robert W., 52, 94n. 1, 97nn. 28, 30, 98nn. 37, 39, 715n. 1
bank loans
racial disparities and, 165
entrepreneurs
age of, 56, 64
adjusting income to account for returns to capital, 72
decline in number of, 47
earnings of, 46, 53
education, return for, 80, 81
employer-provided health insurance affecting, 71
incorrect data manipulation about, 70
minorities as, 87
women as, 85, 86, 747
compared to men, 738
minority business enterprises (MBEs), 687, 689, 690
education levels and, 693, 694
effects of prior work experience, 695
SMOBE/SWOBE data changes, 696
women-owned firms, 724 table 23.1, 727 table 23.1, 740, 745, 748
Fama, Eugene F., 189, 343, 408
family firms, 3, 167–190, 177 Fig. 6.1, 192–226, 781
capital structure of, 13, 173–174 table 6.1, 177–191
CEO family succession, 175, 176
CEO/owner, 175, 176
family-owned, 175, 176
making financial decisions in, 221 table 7.7
goals of, 194–195
governance of, 195–209
private equity in, 200–202
retained earnings of, 198–200
trade-off theory, 169, 188, 311
Fawcett, 468, 476, 478, 479, 485, 491
motivation questions, 486, 487–489 table 15.2, 471–479
Fazzari, Steven M., 274, 290 table 9.3, 561 table 18.1, 564, 644 table 21.1, 657
asymmetric information in financial markets, 275
cash flow-investment relationship, 271, 273
supply curve of finance, 272 Fig. 9.6
Feder, Warren H., 625, 627, 628 (p. 902)
Federal Reserve Board, 305, 307
Federal Reserve Bulletin studies, 308–309, 310
Ferris, J. Stephen, 530, 534, 548, 550n. 4
financing
and age of firm, 763–772
and comparative advantage, 674–676, 678, 711
angel. See angel investment
asset-based, 613–622, 613 Fig. 20.1, 623 Fig. 20.2
bank, 313–332, 341–365, 369, 375, 444, 764 Fig. 24.1A
and family firms, 168, 169, 175, 180
and trade credit, 277
compared to venture capital, 136, 139, 667–670
credit rationing by, 262–265
of high-tech firms, 11–13, 136, 146
reasons for not seeking, 772 Fig. 24.7
rejection by, 298n. 32, 299n. 32, 312, 313–332, 314 table 10.1
compared to VC rejection, 278
related to default risk, 281
relationship lending, 346–349 table 11.2
sorting-by-observed-risk paradigm (SBOR), 351
sorting-by-private-information paradigm (SBPI), 351
sorting-by-signaling and self-selection (SBSS), 351, 352
start-up firms and, 134, 154, 155–165, 157 Fig. 5.1, 158 Fig. 5.2, 772 Fig. 24.8
use of by business environment, 134, 138, 229, 261, 262, 278, 770 table 24.2
use of by country income, 766 Fig. 24.3
use of by country rule of law score, 769 Fig. 24.5
use of by firm age, 314 table 10.1, 315–318 table 10.2, 765 Fig. 24.2, 770 table 24.2
use of by firm size, 305–310, 343, 344, 345 table 11.1
use of by Gross National Income, 765 Fig. 24.1B See also collateral; information asymmetry; moral hazard
by leasing, 278
cash flow, 271–275, 379, 470
constraints, 290–296 table 9.3, 446–448, 640–654 table 21.1 657–661, 661 Fig. 21.2, 679n. 1, 757
and agency problems, 639–657
adverse selection and, 446, 447, 448
crowdfunding and, 369
explanatory model of, 657–661, 660 Fig. 21.1
funding gaps, 275–285
moral hazard and, 12, 13, 377, 419, 446, 447
start-ups and, 153
corporate, 637–685
and comparative advantage, 674–676
discouraged borrower effect, 259
entrepreneurial, 1, 3, 36, 144–145 table 4.4, 341–365
access to, 3, 755–775, 763–772
alternate types of, 367–390
and capital market concentration, 356–359 table 11.4
and capital market condition, 352–360
and public policy, 2
coproduction, 778
crowdfunding, 3, 369–390
crowdsourcing, 372–390, 373 table 12.1
in weak institutional environments (WIE), 777–823 Fig. 25.1, 782–792 table 25.1, 809
business incubators, 810
challenges in studying, 794–797
coproduction, 779
cross-border activity, 813
distinctiveness of entrepreneurship in, 800–801
emergence of different types of entrepreneurial finance in, 802–810
history of, 799–800
importance of entrepreneurial finance in, 797
indigenous financial innovation in, 810–812
informal finance, 812
Islamic finance, 812–813
microfinance, 810–812
public stock exchanges, 810
international differences in, 2
types of investors, 376 table 12.2 See also business models, crowdfunded ventures
equity-based, 192–225
external, 444
for new industries, 2, 9, 133 See also contracting, financial
formal or informal, 158
gaps in, 255–304, 272 Fig. 9.6, 280 Fig. 9.7, 288, 558
informal
by firm age, 765 Fig. 24.2
use of by country income, 766 Fig. 24.3B
insider, 11
institutional environment and, 761–763
instruments of, 209–222
international differences in, 755–775
corruption of officials, 757
labor markets and 676–677
mezzanine-based, 192–225
private equity, 214–217, 215–216 table 7.5
of family firms, 167–190, 192–225
relationship between sources of and firm age, 768 Fig. 24.4
relationship lending, 341
retained earnings, 209–214, 210–211 table 7.3, 212–213 table 7.4
risk, 37
search theory, 257–260, 258 table 9.1, 259 Fig. 9.1, 276–281
silent partnerships, 202–204, 217–220, 218–219 table 7.6
sources of, 134, 759–760 table 24.1
staged, 12
supplier, 345 table 11.1, 804 (p. 903)
financial institutions, evolution of, 18
FINCA-Peru, 876, 877
Finland
angel investors, 417
SMEs in, 448, 665
underreporting of net income by entrepreneurs, 69, 93, 95n. 6
firm growth, 424–465
and venture capital funds, 448–457, 454 table 14.2
business cycles, 431–432
distributions, 429–430
drivers of, 432–433
employment growth rate, 430 Fig. 14.2
evolutionary selection, 435–438
financing of, 444–448
firm size, 434–435
gazelles, 424, 432
idiosyncratic factors, 426
managerial resources, 438–439
organizational capabilities, 438–439
path, 426
Schumpeterian entrepreneurship, 439–442
serial correlation, 431
size distributions, 428–429
size-growth relationship, 427–428
theories of, 433–444
Fisher’s fundamental theorems of selection, 459n. 4
Fisman, Raymond, 642 table 21.1, 785 table 25.1, 786 table 25.1, 804
credit availability, new firms, 656
trade credit, 757
Fitch Ratings, 590
Flow of Funds Accounts (FFA), 111
Fluck, Zsuzsanna, 756, 757, 759 table 24.1
Ford Motor Company, 22, 25, 40nn. 8, 9, 12
Fossen, Frank M., 111, 120, 124, 125, 126, 127
France, 47
financing of firms, 138
manufacturing firms, 431
SMEs in, 564–565
trade credit in, 528
Frank, Murray Z., 185, 533, 534, 542
Franks, Julian, 189, 475, 551n. 10
Fraser, Stuart, 255, 256, 270, 286, 296 table 9.3, 361
free cash flow, 170
Freear, J., 137, 410, 415
Freeman, J., 437, 438, 459n. 2
Freixas, Xavier, 352, 615, 872
Frey, Bruno S., 74, 75, 76, 114
Fuchs-Schündeln, Nicola, 74, 75, 114
García-Appendini, Emilia, 4, 529, 543, 546, 556
Garmaise, M. J., 78, 82, 97n. 37
Gaston, R. J., 393, 410, 415
Gatewood, Elizabeth, 736 table 23.1, 747, 748, 749
Gatti, Stefano, 580, 582 table 19.1, 588, 593, 607, 609nn. 3, 4
project finance
background, 578
“financial advisor”, 479
Gaussian distribution, 430
General Carriage, 24 Fig. 1.2
General Electric, 28
General Motors, 24, 25, 40n. 13
Gentry, William M., 77, 78, 111, 115, 117, 125
German Socio-Economic Panel Survey (SOEP), 111, 120
Germany, 3, 355
capital income of entrepreneurs in, 123 table 3.5
earnings in, 59, 60, 61
entrepreneurs in, 121, 122 table 3.4
equity gaps in, 282
family firms in, 172, 175, 177, 178 table 6.2, 179 Fig. 6.2, 192–225
firm growth rates, 432
IPOs in, 455, 473
intellectual property rights protection in, 796
job satisfaction of entrepreneurs in, 74
patent registrations, 455
risk tolerance of self-employed in, 123 table 3.5
SMEs in, 564–565, 665
two-tier board system of, 175
undiversified portfolios of entrepreneurs, 111
unified, 75
wage workers in, 121 See also East Germany
Geroski, Paul, 10, 426, 428, 434, 442
Gersick, Kelin E., 194, 195, 199
Ghana, business and financial literacy training in, 843
Ghatak, Maitreesh, 829, 862 table 27.1, 876, 878
Gibrat’s Law of Proportional Effect, 426, 427, 428, 429, 430, 431
Gilson, Ronald J., 39n. 2, 379, 473, 762, 805, 806
venture capital fundraising and past IPOs, 16
Giné, Xavier, 829, 841, 844 table 26.3
Glass-Steagall Banking Act, 29
Global Entrepreneurship Monitor, 73, 802, 804, 805, 815n. 2
Global Project Finance loans market, 578
goal conflicts, 13
Goldfarb, Brent D., 26, 32, 36, 37, 38, 415
equity stakes affecting adverse selection, 13
electrification financing in London, 21
Internet start-up survival, 11
IPO signals, 17
Goldstone, Jack A., 799, 806, 807
Gollier, Christian, 532, 534, 543, 545, 861 table 27.1
Gompers, Paul A., 165, 460n. 19, 667, 670, 756, 763
agency theory, 13
debt versus equity, 11, 12
financing constraints, 647 table 21.1
IPO signals, 17 (p. 904)
lockup expiry effect, 481
prudent man rule, 31, 668
technology-based firms, 255
venture capital fundraising, 16, 137
biotechnology industry and, 32
limited partnerships, 39n. 2
use of stagins, 407
volatility in, 36
with start-ups, 138
Gordon, Roger H., 125, 649–650 table 21.1, 672, 680n. 15
governance, corporate, 220–221, 659, 675, 676, 795, 879
and information asymmetry, 447
debt repayment and, 655
dividend payments and, 673
supervisory board, 202, 204
in Danish firms, 175, 176, 181, 182, 189n. 5
in family firms, 195, 197, 199–200, 206 table 7.1, 207, 208 table 7.2
and financing decisions, 220, 221 table 7.7
and decision to use private equity funding, 217
and use of silent partnerships, 218–219 table 7.6
in German firms, 193, 196, 197
venture capital firms and, 453, 509
Graham, John R., 479, 482, 483, 486, 491, 637
capital structure, 470
IPOs, 475, 478
Grameen Bank, Bangladesh, 826, 831, 835, 860, 870, 876
beginning of, 811
and the Nobel Prize for Peace, 826
Great Depression, 28, 29, 40n. 15
Greene, Francis J., 360, 361, 371
Greene, Patricia G., 733 table 23.1, 746, 748, 749
guarantees, personal, 157, 571, 619
Guatemala
lending groups in, 877, 884
microfinance in, 811
Guiso, Luigi, 268, 656, 761, 762
Gundry, Lisa K., 721 table 23.1, 737, 738, 747, 749
Haines, G. H., 729 table 23.1, 743, 748
Hall, Bronwyn H., 60, 427, 448, 656, 665
Hamilton, Barton H., 94n. 1, 95nn. 5, 6, 8, 96n. 9, 96n. 11, 97n. 19, 114
entrepreneurship
earnings, 47, 48, 51 fig. 2.2, 53, 55, 57
compared to wage workers, 62, 63
minorities and, 86
in United States compared to in United Kingdom, 60
sector-specific earnings functions, 71
underreported, 69
preference for, 74, 75
questioning, 109
wealth accumulation, 77
Han, Liang, 351, 352, 354, 355, 360, 361
bank financing, 344, 350
relationship lending, 343
credit markets, 342
Hand, J. R. M., 501, 504, 506, 513, 517, 522n. 3
IPO valuation, 500 table 16.1
Hannan, M. T., 437, 438, 459n. 2
Hargadon, Andrew B., 236, 237, 295 table 9.3
Harrison, Richard T., 300n. 45, 396 table 13.l, 417, 736 table 23.1, 746
equity gaps, 282, 284, 286
financing constraints, 293 table 9.3, 294 table 9.3
Hartog, Joop, 94n. 1, 95n. 8, 96n. 12, 100n. 52, 124, 125
entrepreneurs
ability and 84
characteristics of, 92
earnings of, 53, 55, 65, 70, 71, 76
education and, 80
human capital and, 64
risk aversion of, 121
Harvey, Campbell R., 479, 482, 483, 486, 491, 798
cost of capital, 470
IPOs, 475, 478
Haynes, George W., 134, 198, 730 table 23.1, 743
Health and Retirement Study (HRS), 121
health insurance, 97n. 29
Heckman model, 49, 455, 758
HedgeFund.net, 622
hedge funds, 1, 4
asset-based lending by, 612, 622–633, 623 Fig. 20.1
Hellmann, Thomas, 39n. 4, 453, 457, 647 table 21.1, 667
banks, gathering information to mitigate information asymmetry, 139
venture capital firms
aiding in competitive situations, 138
and debt working together, 12
contract structure, 378
exit strategy, 135
relationship to innovation, 137
replacing managers, 13, 14
Henrekson, Magnus, 20, 31, 725 table 23.1, 737
herding model, 36, 37
Herfindahl-Hirschman index (HHI), 352, 354, 355, 361n. 4, 471
Hermes, Niels, 830, 844 table 26.3
high-technology industry, 286, 372, 447, 496
and human resource management, 455
angel investors and, 395, 561
failure rates of, 11
financing of, 255, 257, 274, 279, 285, 656
debt and, 12
history of, 10, 28, 29–30
start-ups, 133–134, 136–140, 140 table 4.1, 141–146
in weak institutional environments, 813
IPOs, 30
survival of, 142 table 4.1 (p. 905)
taxes and, 639
venture capital and, 13, 29, 154, 667, 669, 670
benefit to new firms, 455–457
compared to angel investors, 393
equity gap, 282
reduction of IPOs, 289
Himmelberg, Charles P., 139, 274, 291 table 9.3, 643 table 21.1, 656
History of Economic Analysis, 460n. 13
Hitt, Michael A., 195, 196, 199
Hochberg, Yael V., 15, 137, 453
Hogarth-Scott, Sandra, 722 table 23.1, 737, 747, 749
Holland
survey, 121
women-owned businesses in, 743
Hollis, Aidan, 861 table 27.1, 871, 875, 886
Holmstrom, Bengt, 478, 638, 873
Holtz-Eakin, Douglas, 266, 267, 291 table 9.3, 298nn. 16, 18, 19, 694, 715n. 1
credit rationing, 264
entrepreneurs
human capital and, 164
receipt of inheritance and, 116
wealth of, 77, 78
women, 85
Holzl, W., 429, 431, 432
Honduras, microfinance in, 829
Honig, Benson, 237, 240, 241 table 8.1, 247, 249
entrepreneurs
business plans of, 233, 236
Hoppenstedt database, 205
Hoskisson, Robert E., 777, 794, 795, 796, 800
Howorth, Carole, 196, 100, 562 table 18.1, 565
Hsu, David H., 16, 17, 30, 31, 39n. 3
Hubbard, R. Glenn, 274, 299nn. 28, 30, 637, 644 table 21.1, 657, 662
entrepreneurs
cash flow and investment of, 256, 273
credit constraints of, 115
private equity premium puzzle, 117
taxes and, 125
wealth of, 77, 78, 111, 272 Fig. 9.6
Huber-White robust standard errors, 108
Hudson Motor Car Company. See American Motors
Hughes, Alan, 563 table 18.1, 565, 763
Hulme, David, 830, 846 table 26.3, 863 table 27.1, 869, 871
human capital. See choice, entrepreneurial
Hundley, G., 74, 75, 85, 86
Hungary, business incubators in, 810
Hunt, Stephen, 392, 396 table 13.1, 411, 416, 421n. 9
Hupp Motor Car Company, 22
Hurst, Erik, 98nn. 37, 38, 164, 266, 294 table 9.3, 298n. 18
entrepreneurs
capital acquisition of, 117
wealth of, 78, 265, 266, 267
and entry probability of, 116
Huy, Quy Nguyen, 237, 246, 249
Hyytinen, Ari A., 89, 448, 645 table 21.1, 665
IfMBonn, 205
Ijiri, Y., 430, 435, 459n. 1
income shifting, 125
income tax, progressive, 29
incorporation, separate, 583
India, 816n. 5
angel financing in, 804
business and financial literacy training in, 843
business incubators in, 810
entrepreneurial finance in, 813
microfinance in, 829, 831, 838, 839, 840, 841
new companies in, 777, 798
private equity opportunities in, 798
private savings in, 803
small businesses in, 757
venture capital in, 805, 806, 807
Indonesia, 816n. 5
microfinance in, 831
venture capital in, 807
industry emergence, new, 17–26
information
acquisition, private, 342
asymmetry, 3, 272, 275, 561, 564, 881
and credit constraints, 115, 133, 134–135, 153, 341–365, 446, 447
and employee screening, 63
angel investors, 419
asset-based financing and, 614, 615, 616, 627
attracting capital, 387
crowdfunding and, 369, 377, 386, 389
dividend puzzle and, 673
equity managing, 12
factoring and invoice financing, 558
family firms and, 168
funding gap and, 260, 756, 757
group lending and, 876
high-tech firms and, 136, 138, 139, 146, 279
IPO and, 472
microfinance and, 859, 869, 874, 879, 881
new industries and, 10
pecking order theory and, 169, 472, 479
relationship lending and, 346–349 table 11.2
start-ups and, 762, 802
trade credit and, 530, 531, 533, 534, 550n. 4
venture capital and, 13, 425, 449, 450, 451 Fig. 14.3
weak institutional environments and, 794
and microbank innovations, 872–873
information technology industry, 114, 141
initial public offerings (IPOs)
and acquisition liquidity events, 17 Fig. 1.1
and public markets, 15–17
angel investors and, 409
bubbles, 498
Chinese, 779
high-tech firms and, 136, 137
minimum threshold to be placed on stock market, 379
of start-ups, 39n. 2
ownership structure of, 518 table 16.5
recycling mechanism, 15, 39n. 2
returns from, 399, 421
signals of owners to prospective investors, 517–521
stock market and, 36, 762
survey of IPO CFOs, 484–485, table 15.1
summary statistics of U. S., 510–511 table 16.2
theories of IPO choice, 467–493, 487 table 15.2
allow more dispersion of ownership, 474–475
create a public market, 476
create an analyst following, 476–477
create shares for compensation, 478
establish market price for future sell-out, 472
have a first-mover advantage, 475–476
secure future growth, 469
enjoy insider liquidity, 473
minimize cost of capital, 470
overcome borrowing constraints, 471–472
observe pecking order of financing, 471
enjoy windows of opportunity, 477–478
summary of, 479–480
survey data, 482–483
trade sales and, 417
valuation of, 495–524, 523n. 14
accounting data valuation, 499, 515–516 table 16.4
basic model of, 512–517
corporate ownership structure and, 498
estimation issues, 502–507
extant literature on, 498–501, 500 table 16.1
Internet valuation studies, 501
model, 496–497
relation between IPO values and time period dummies, etc., 512 table 16.3, 520 table 16.6
sample and data, 507–512
venture funds and, 399, 411, 452, 453, 454
volatility of, 36, 37
Inktomi, 495
innovation, 141–146, 144–145 table 4.4, 674–667, 679n. 5
incentives for private R&D, 674
Intel Capital, 809
interest rates, 602, 615, 617, 624, 762, 771
adjusting for the returns to capital, 72
affected by proportion of new credit, 271
affecting cash flow and investment, 256
affecting firms applying for loans, 772 Fig. 24.7
after an IPO, 471, 489, 537, 540
and adverse selection, 299n. 29, 435
and average risk, 260
and collateral, 446
and information asymmetries, 352
and relationship lending, 344
and the second-lien market, 629
and trade credit, 529, 540–541, 544, 545, 550
microfinance and, 826, 830, 877
misappropriation of funds and, 273
on loans to minority business owners, 692, 702 table 22.4, 703
on loans to women business owners, 743, 744
on loans to start-ups, 11
open market, 262
related to signaling, 260, 352
risk, 594, 596, 598 Fig. 19.2, 658
signals and, 352
SMEs and, 564
internal rate of return (IRR), 282 table 9.2, 300n. 39
International Finance Corporation (IFC), 798
International Monetary Fund, 815n. 3
Internet, 29, 31, 32–34
boom-and-bust cycle, 38, 282 industry, 141, 496
use in crowdfunding, 369–390 See also stock, Internet
Inverse Gaussian distributions, 270 Fig. 9.5
investment
arms-length, 18, 20
private equity, 30 See also trusts, investment
Investment Dealers’ Digest (IDD), 480
invoice financing, 4, 558–576
discounting, 572–573
and factoring compared to bank loans, 574 table 18.2
Ireland, software companies, 448
Israel
common law legal tradition and business value in, 761–762
venture capital in, 805, 806
iStockphoto, 375
Italy
financing of firms in, 138, 757
IPOs in, 469, 473, 474, 475
manufacturing firms in, 428
severance indemnities in, 677
Japan, 3, 355
bank-based system, 762
family firms in, 177, 178 table 6.2, 179 Fig. 6.2
IPOs in, 474
SMEs in, 666
Jensen, Michael C., 408, 429, 615, 617, 673, 781
entrepreneurs
equity importance, 12
free cash flow hypothesis, 189n. 10
principal-agent theory, 170, 196
risky behavior of, 13
types of financing, 134
Johan, Sophia A., 39n. 4, 460n. 20, 646 table 21.1, 667
Johansson, Edvard, 46, 69, 715n. 1
Johnson, Simon, 369, 376, 801
Jovanovic, Boyan, 256, 268, 299nn. 24, 26, 27, 427, 435, 715n. 1
boom and bust cycles in new industries, 35 (p. 907)
entrepreneurs
borrowing power limiting entry, 133
characteristics of, 84
deciding to
remain in business or choose wage work, 262–265
withdraw from the industry, 436
finance, 761
constraints and, 116, 139, 270, 276, 290 table 9.3
gaps, 273
initial capital
increasing survival chances, 271
usually small amount, 73
learning experiment for, 275
time spent as, 99n. 50
human capital, 65, 82
start-ups retaining earnings, 83
venture capital and excess return, 460n. 16
Kaboski, Joseph, 836, 839, 849 table 26.3
Kaplan, Steven N., 12, 36, 35, 189, 284, 667
financing constraints
severity of, relating to investment-cash flow sensitivities, 657
summary of findings, 292 table 9.3, 645 table 21.1
venture capitalists
specialties, 453
Karlan, Dean, 870, 877
group lending
moving from group lending to individual lending, 829
microfinance
positive effects on business profits, 839
research on, 844 table 26.3, 850 table 26.3, 854 table 26.3, 862 table 27.1, 863 table 27.1
randomized lending experiment, 838, 841, 843
Karlsson, Tomas, 233, 240, 249
Kauffman Firm Survey, 2, 3, 140–146, 155, 163 table 5.3, 165, 305
entrepreneurs, age of, 157
profile of, 140
on financing new firms, 133
on minority-owned businesses, 688, 695, 696–697, 708, 713
on women-owned businesses, 740, 745
start-ups and bank financing, 158–162
Kawaguchi, Daiji, 52, 63, 64, 67, 72, 96n. 11
entrepreneurs
flat earnings of, 66
human capital, 71, 79
minority, 693
work satisfaction, 74
Keilbach, M., 454 table 14.2, 455, 456
Kendall’s tau, 209
Kenney, Martin, 17, 30, 31, 805, 806, 807
entrepreneurial finance in weak institutional environments, 788 table 25.1
Kenya
microfinance savings in, 839
trade credit in, 804
Kepler, Erin, 723 table 23.1, 737, 738
Kerr, William R., 50, 138, 154, 156, 756, 759 table 24.1
Keuschnigg, Christian, 4, 460n. 19, 675, 679nn. 4, 9
credit constraints in small firms, 657
tax reform, 662, 664, 666, 670
venture capital investment as an advantage, 377, 453, 667, 668
Kevane, Michael, 790 table 25.1, 811
Keynes-Tobin marginal Q, 274, 299n. 30
Khandker, Shahidur
entrepreneurial finance in weak institutional environments, 790 table 25.1
microfinance, 835, 847 table 26.3, 869, 849 table 26.3
research summary, 849 table 26.3, 863 table 27.1
women borrowers, 811, 831, 869
Khanna, Tarun, 778, 781, 809
Kim, M., 499, 500 table 16.1, 502, 508
Kirsch, David A., 2, 21, 23, 26
Kiva, 880
Klapper, Leora, 4, 762, 773n. 1
entrepreneurial finance in a weak institutional environment, 785 table 25.1
factoring, 563 table 18.1, 570, 804
financial literacy correlating to financial development, 842
trade credit, 547, 557
Kleeman, Frank, 369, 371, 372, 373 table 12.1, 374
Kleimeier, Stefanie, 582 table 19.1, 582, table 19.1, 583, 609n. 1
Klein, Sabine B., 192, 194, 195, 196, 197, 205
Klein, A., 499, 500 table 16.1, 517
Klepper, Steven, 13–14, 15, 22, 35, 36, 40n. 12
Koellinger, Philipp D., 67, 76, 125, 815
Korean Labor and Income Panel Study (KLIPS), 56, 58, 67, 96n. 17, 97nn. 19, 20
Kortum, Samuel, 137, 647 table 21.1, 667
labor markets
finance and, 676–677
Lamoreaux, Naomi R., 18, 20, 21, 40n. 12
Lancaster, 360
Laplace function, 429, 430
La Porta, Rafael, 640 table 21.1, 651 table 21.1, 655, 672, 673, 881
English legal origin countries and venture capital protection, 805
family firms, 167
in Denmark, 175
ownership of, 170
financial markets
affected by a country’s legal and institutional development, 761
French legal origin countries and access to bank credit, 803 (p. 908)
Lazear, Edward P., 13, 55, 62, 66, 86, 89
firm governance, 12
lease financing, 804
Lee, Sang-Heui, 56, 85, 372, 373
Lee, Sang-Suk, 728 table 23.1, 730 table 23.1, 742, 744, 748, 805
Lehman Brothers, 165
Lehmann, Erik, 343, 454 table 14.2, 455
Leland, Hayne E., 472, 498, 522n. 5
Leighton, L. S., 88, 89, 90, 95n. 8, 96n. 10, 715n. 1
entrepreneurs
characteristics of, 46
returns to, 52, 53, 63, 79, 83
Leland, Hayne E., 11, 12, 614, 628
Lemieux, T., 50, 72, 80
Lenox, Michael J., 138, 809, 810
Lerner, Josh, 17, 165n.1, 460n. 19, 670, 756, 763
financing constraints, 647–648 table 21.1
hot-market phenomenon, 478
new technology-based firms (NTBFs), funding of, 255
prudent man rule, 668
R & D spending, external financing of, 656, 665, 667
venture capital
and biotechnology firms, 32
exit opportunity, 473
external equity financing, 137
likelihood of connecting with, 669
limited partnerships, 31
size of firm, 16
Levie, Jonathan, 797, 798, 802, 813, 815
Levine, Richard I., 194, 755, 761
Levine, Ross, 798, 816n. 8, 869
Liberty Bonds, 26
life insurance, 29
Likert scale, 214, 220
Lindh, Thomas, 78, 98n. 37, 715n. 1
Lingelbach, David C., 4, 798, 801, 802, 805, 807, 810
entrepreneurial finance in weak institutional environments, 781, 782 table 25.1, 788 table 25.1, 789 table 25.1
liquidity constraints, 139, 264, 344, 688, 689, 690
as possible explanation for risk, 115–117
banks facing greater than venture capital firms, 136
Ljungqvist, A. P., 473, 481, 508, 509, 522nn. 1, 5
stickiness of loan rates, 261–262
Lockett, Andy, 282, 293 table 9.3, 628
Long, Michael S., 531, 547, 568
“loose coupling”, 249
Love, Inessa, 4
access to finance, 755
Banco Azteca in Mexico, 837
entrepreneurial finance in weak institutional environments, 786 table 25.1
financing constraints, 642 table 21.1, 656
microcredit, 839
microfinance, 850 table 26.3
supplier finance, 804
trade credit, 757, 758
Lowry, M., 469, 477, 479
Lucas, Deborah, 113, 140, 477
Lusardi, Annamaria, 98nn. 37, 38, 117, 265, 266
financial literacy relating to financial development, 842
inheritance, 298n. 18
microfinance, research on, 852 table 26.3, 853 table 26.3
wealth
decreasing risk aversion, 116
financing constraints, 294 table 9.3
flat transition probability profile, 78
relating to entrepreneurship, 164, 267
Mach, Traci L., 308, 309, 344, 528, 696
MacKie-Mason, Jeffrey K., 649 table 21.1, 672
Majluf, Nicolas S.
business plan purpose, 240
information asymmetry, 377
pecking order theory, 139, 169, 198, 278, 472, 482
Maksimovic, Vojislav
entrepreneurial finance in weak institutional environments, 785 table 25.1
IPOs
as advantage, 475
herding and, 479
leverage ratios affected by a country’s legal system and institutions, 171
supplier finance, 804
trade credit, 553, 534, 542
Malaysia
and property rights, 800
business incubators in, 810
microfinance in, 829
venture capital in, 807
Mali, microfinance in, 829
Manigart, Sophie, 410, 453, 454 table 14.2, 805
Manova, Kalina, 653–654 table 21.1, 676
Marconi Company, 28
markets
banking, conditions of, 355
booms and busts in, 1, 45, 497, 503, 506
bull, 30
capital, 23, 78, 133, 139–140
condition of, 352–360
competitive, 342, 343, 353, 354 table 11.3, 355, 360, 435
concentrated, 353, 354 table 11.3, 360, 361, 438
credit
concentration of, 342, 343, 356–359 table 11.4
condition of, 3, 341–365, 680nn. 19, 20, 762
curb, 23, 25, 27, 28, 40n. 10
over-the-counter, 29
valuations, 498, 503
Marlow, Susan, 727 table 23.1, 741, 742, 748
Mason, Colin M. 300n. 45
angel investors, 396 table 13.l
returns to, 417 (p. 909)
availability of equity funds, 284
equity gaps, 282, 286
financing constraints, 293 table 9.3, 294 table 9.3
new technology-based firms (NTBFs), 255
women-owned firms, 736 table 23.1, 746
Maxwell Briscoe Motor Company, 22
Maxwell Motor Company, 24
McConaughy, Daniel L., 169, 171, 172, 193, 194, 198
McFadden’s R2, 214, 217
McKenzie, David, 834, 843, 848 table 26.3, 854 table 26.3
Meckling, William H.
capital structure of firms, 615
entrepreneurs
behavior of, 13
having large stake, 408
equity
advantage of, 12
financing, 134
principal-agent relationships, 196
risk alteration after loan granting, 617
zero agency costs, 170
Media No Mad, 370, 381–388
legal issues of, 385
medical device industry. See bio-technology companies
Megginson, William L., 38, 453, 505, 582 table 19.1, 583
Menichini, Anna Maria C., 532, 533, 546
Menzies, Teresa V., 733 table 23.1, 746, 749
mergers and acquisitions, 186
Mersland, Roy, 5, 886n. 4
microbanks
characteristics of, 865
consistency of loan size, 883
cost of doing business and, 881
future of, 886
importance of small loans from, 874
institutional situation of, 884
international element in, 880
mixture of loans granted, 878
serving the poor, 879
microfinance
overview of research, 861 table 27.1, 864 table 27.1
ROSCAs, 871
Metropolitan Statistical Area, 39n. 2
Metropolitan Statistical Association, 400
Mexico, 816n. 5
angel financing in, 804
entrepreneurial finance in, 799
group lending by, 876
informal investing in, 805
microfinance in, 834, 836, 837, 839
new business registration in, 67
mezzanine-based financing, 3, 169, 192–222, 627, 629
management human capital (MHC), 270
Mian, S., 563 table 18.1, 567, 568
microbanks
characteristics of, 864–866, 866 table 27.2, 884–885
funding for, 879–880
group lending, 876–877
compared to individual lending, 884
loan portfolios, 868 table 27.3
loan size, 883
market for, 874
monitoring of, 878–879
portfolios, operational cost and risk, 882 table 27.4
rotating savings and credit associations (ROSCAs), 868
scale advantages, 885
women as customers for, 874–875, 884 See also Akerlof’s lemon problem; Kiva; moral hazard
microcredit. See microfinance
Microcredit Summit Campaign, 832, 869, 874
Microfinance Focus, 871
microenterprise growth, 833 table 26.2
and business and financial literacy training, 842
microfinance, 1, 2, 4, 5, 810–812, 825–857
and entrepreneurship, 831–840
and microcredit, 826
and microenterprises, 833–834
and poverty reduction, 830–831
definition of, 826
diffusion of, 866–869, 872
impact of, 869–870
innovations in, 872–880, 880–885
measuring the impact of, 834–839
origins of, 870–871
outreach, 826–828
overview of, 826–831
repayment requirements, 840–843
research on, 844–854 table 26.3, 861–864 table 27.1
savings accounts, 839–840
per capita, 828 Fig. 26.2
sustainability, 830
microfinance industry, innovations in, 859–891
microfinance institutions (MFIs), 826, 860
distribution of poorest clients, 827 table 26.1
lending models, 828
penetration rates, 827 Fig. 26.1
Mikkelson, W. H., 469, 475, 483
Miller, Danny
family firms, 171, 176, 195
and silent partnerships, 204
capital structure of, 168, 169
independence of financing and investment decisions, 272
meta-analysis, 244 table 8.2 (p. 910)
Miller, M. H., 139, 470, 491, 813
Minority Business Development Agency, 695, 697
minority business enterprises (MBEs), 687–717
minority-owned business, 4, 687–717
background, 689–705
capital sources, 697–699, 698 table 22.1, 700 table 22.2
capital use, 712–713 table 22.9, 714 table 22.10
newly formed firms, 708–714, 709 table 22.7, 710–711 table 22.8
equity investments, 701 table 22.3
human capital barriers, 693–694, 715n. 5
lending discrimination and, 691–692
loan amounts survey, 704–705 table 22.5, 707 table 22.6
loan denial rates, 702 table 22.4
social capital and, 694 See also women-owned businesses
Mintzberg, Henry, 233, 236, 245
Mishra, Chandra S., 169, 171, 172, 193, 194
MIT, 61
Mitchell, Olivia S., 842, 852 table 26.3
MIX Market (www.mixmarket.org), 865, 867, 880, 886n. 1
Modigliani, Franco, 139, 168, 168, 272, 470, 491
Modigliani-Miller theorem, 881
Monte Carlo simulation, 606 Fig. 19.5
Moore, D. A., 55, 62, 76, 378
Moore, Dorothy P., 722 table 23.1, 737, 747
moral hazard
achievement of milestones to reduce, 377
alerting that entrepreneur’s effort cannot be monitored, 135
and increased competition, 360
asset-based lending and, 619
causing CEO replacement, 14
challenging equity, 12
considerations of financing, 134
credit information reducing, 761
double, 668
entrepreneurial behavior and, 446, 447, 450
financial constraints due to, 638
financial intermediaries and, 615
group lending mitigating, 829, 876
high cost of monitoring causing, 873
lack of when entrepreneurs disclose information, 352
minimized by structure of venture capital limited partnerships, 31
outcome of asymmetric information, 344
related to cash flow and investment, 256, 272
stock ownership by managers mitigating, 499
tolerated better by private equity, 419
trade credit and, 530, 532
venture capital special teams mitigating, 458
Morck, Randall K., 797, 809, 879
Morduch, Jonathan
entrepreneurial finance in weak institutional markets, 791 table 25.1, 792 table 25.1
group lending, 812, 876
models of, 877
microcredit transitioning into microfinance, 826
microfinance, 811, 859, 883
borrowers finance self-employment, 825
funding of, 879
impact of, 869
research on, 849 table 26.3, 863 table 27.1, 864 table 27.1
second wave of innovation, 885
small loans of short duration, 878
women-owned businesses and, 874
Morris, Michael H., 723 table 23.1, 738, 749, 799
Moskowitz, Tobias J., 113, 114, 116
angel investors, 396 table 13.l
expected returns, 419
entrepreneurs
assets of, 111
returns to, 55, 74, 76, 97n. 23, 109
with high risk, 110
private equity, 418
premium puzzle, 117, 128
Mosley, Paul, 830, 846 table 26.3, 863 table 27.1, 869, 871
motivation (why firms go public), 134–136
Motor magazine, 23
mutual funds, 29
Myers, Stewart C.
capital structure, 562 table 18.1
entrepreneurs
and capital structure, 153, 169, 188n. 2, 189n. 2
retained earnings, 757
informational asymmetry, 198, 377, 472
market value of firms, 496
pecking order theory, 139, 278, 482, 565
MyFootballClub, 379
Nanda, Ramada, 38, 97n. 30
dividend taxation, 673
entrepreneurs
and capital intensity, 756
availability of capital and, 164
savings rates of, 78
tenure of, 99n. 50
IPO markets
volatility of, 37
start-ups, 46, 154, 156
Nanda, Vikram K., 133, 138, 651 table 21.1
nanotechnology. See bio-technology companies
NASDAQ, 497, 503, 779
Nash bargaining framework, 275
Nash-Kelvinator. See American Motors
Nash Motor Company, 25
Natal, adoption of Western financial institutions, 800
National Association of Securities Dealers Automated Quotations (NASDAQ), 29, 32, 113
National Association of Women Business Owners, 731, 746 (p. 911)
National Bureau of Economic Research, 432
National Child Development Study in Great Britain, 116
National Federation of Independent Businesses, 745
National Income and Product Accounts (NIPA), 111
National Longitudinal Survey of Youth (NLSY), 80, 96n. 15, 97nn. 25, 28, 31, 133
adjusting for returns to capital, 72, 73
and the ASVAB, 99n. 48
earnings growth of young and less educated, 81
finding that self-employed earn less than wage earners, 52
incorrect data manipulations and, 70
minority entering entrepreneurship, 86
order of questions in, 96n.10
returns to entrepreneurship, 56, 58
self-employment data sets, 61, 95n. 8
National Science Foundation, 141
Scientists and Engineers Statistical Data System, earnings of members, 56
National Survey of Small Business Finances, 116, 137, 692, 741, 744, 758
neo-Keynesian theorists, 794
net present values (NPVa), 60, 189
Netherlands, earnings in, 59
Netscape, 38, 467–468, 491
network of contracts, 584, 586, 595, 597, 601
networks, social, 10, 18, 19, 39
New Deal, 29
New England Council, 30
New Products Committee, 30
new technology based firms (NTBFs), 286, 300n. 44, 456
New Zealand, 47
New York Stock Exchange, 21, 25, 26, 40n. 10, 113
Ng, Chee K., 534, 536, 541, 555, 556
Nicaragua, poverty in, 832
Nielsen, Kasper M., 167, 170, 175, 189, 460n. 19, 670
Nigeria, indigenous banking in, 799
Nilsen, Jeffrey H., 547, 548, 549
North, Douglass C.
historical norms, 796
institutional theory, 794, 797, 800, 807
transition from limited-access to open-access orders, 801
weak institutional environments, 778
Norway, 47
women-owned businesses in, 745
notes, 24
OCED countries, 59, 560, 662, 664
Ofek, E., 481, 495, 499, 501
Ohlsson, Henry, 78, 98n. 37, 715n. 1
Olofsson, Christer, 268, 276, 284, 286, 290 table 9.3, 300n. 45
Oman, business incubators in, 810
Ongena, Steven, 342, 353, 355, 360
Opportunity International, 870
options theory, 36
Orser, Barbara J.
meta-analysis, 243 table 8.2
women-owned firms, 722 table 23.1, 731 table 23.1, 737, 741, 744, 747
being more risk-averse, 749
reluctance to apply for outside financing, 748
O’Sullivan, Mary A., 24, 27, 28, 40n. 10
Oswald, Andrew J., 298nn. 16, 18, 715n. 1
entrepreneurs
credit constraints, 116, 292 table 9.3
credit rationing, 264
inheritances, 267
satisfaction of, 74, 114
over-the-counter (OTC) drugs. See bio-technology companies
overinvest, 342, 360, 364
Packard Motor Company, 25
Pagano, M., 469, 474, 475, 477, 478, 482
IPOs
benefits of, 471
control transfers after, 473
Pakistan
business and financial literacy training in, 843
business incubators in, 810
poverty in, 832
venture capital in, 807
Palepu, Krishna G., 778, 781, 809
Panama, poverty in, 832
panel data. See data, panel
Panel Study of Entrepreneurial Dynamics (PSED II), 155, 158–162, 164, 165
Panel Study of Income Dynamics (PSID), 96nn. 16, 17, 18, 97nn. 19, 20, 693, 694
data on entrepreneurs, 95n. 8
distribution of earnings, 57 Fig. 2.4, 58 table 2.1, 59, 60, 61
low-income earners, 55
minority population in entrepreneurship, 689
wage fluctuations when changing from self-employment to wage earner, 89
wealth among entrepreneurs, 77
Pareto distribution, 459n. 1
Parker, Simon C., 715n. 4
entrepreneurs
and abandonment of project within one year, 46
as an escape route from discrimination, 87
credit constraints and, 256
downscaling of loans, 297n. 14, 298n. 15
education of, 64, 80, 99n. 46
exit of, 63
financing constraints, 294 table 9.3
human capital and, 70, 79, 83, 264, 265
rates falling in industrialized countries, 47
response to taxation, 126
returns to, 48, 55, 62, 69
higher in self-employed who employ others, 56, 70, 96n. 16 (p. 912)
lower in female entrepreneurs than in male, 85
self-selection and, 50
types of financing, 134
underreporting income of, 97n. 27
women work fewer hours than men, 86
partnerships, silent, 202–204
Pastor, Lubo, 36, 469, 474
patent holders, 56
Patton, Dean, 727 table 23.1, 741, 742, 748
pecking order theory, 207, 216, 217, 220, 312
and information asymmetry, 472, 479
capital structure decisions and, 139, 758
conflicting with trade-off theory, 311
external equity as a negative signal, 472
information asymmetries and, 169
partially reversed, in Finnish SMEs, 448
private equity and, 201
retained earnings and, 198
sequence of, 278, 279, 340, 447, 469, 480
SMEs and, 561, 563, 565
survey information and, 482, 486, 679n. 9
Peng, Mike W., 795, 796, 801
Peneder, Michael, 428, 439, 442, 452, 454 table 14.2, 456
pension funds, investment of, 31
performance, economic, 637–685
Perry, Stephen C., 242 table 8.2, 725 table 23.1, 739, 748
personal guarantees. See guarantees, personal
Peru
business and finance literacy training in, 843
microfinance in, 839
poverty in, 832
Petersen, Bruce C.
capital structure, 561 table 18.1
credit constraints, 83, 291 table 9.3, 644–645 table 21.1, 657
high-tech firms
information asymmetries, 136
small firms and their lower debt, 137
new firms, capital structure of, 139
R & D activities, financing of, 656, 665
Petersen, Mitchell A.
asymmetric information, 343, 350
E-banking, 361
microbanking, 883
relationship lending, 341, 344
small business finance, 153, 164
credit market conditions and, 355
credit to, 308, 339
trade credit, 340, 534, 540
pharmaceuticals. See bio-technology companies
Philippines
angel investing in, 804
microfinancing in, 829, 838
Piaget, Jean, 245, 246, 247, 248
Pischke, J. D. Von, 781 table 25.1, 811, 879
Pitt, Mark M.
entrepreneurial finance in weak institutional environments, 790 table 25.1
microfinance, 835, 847 table 26.3, 869
research summary, 849 table 26.3, 863 table 27.1
women borrowers, 811, 831
planning, 229–252
and performance, 241 table 8.1
causation-based, 236
contingency, 247 Fig. 8.2
definitions, 235
effectuation-based, 236
future research into, 249–250
long range, 232, 236, 237, 238–245
medium range, 237
military, 233
modifying, 237
of ancient civilizations, 234
related to business success, 238–254
short range, 242, 236, 237
strategic, 237
teaching and learning, 245–248
theory of, 236 Fig. 8.1 See also “loose coupling”
Poland, 816n. 5
policy, public, 1, 2
international differences, 4
Portugal
IPOs in, 473–474
manufacturing firms, 428
trade credit in, 528
Poterba, James M., 654 table 21.1, 670, 676, 680n. 16
Potter Instruments, 30
Poutziouris, Panikkos, 195, 201, 202
Panikkos Z., 195, 201, 202, 224
Powell, T. C., 242 table 8.2, 800
Preston, Susan L., 293, 415, 416
principal-agent theory, 170, 189
project finance, 4, 578–610
advantages of, 583–584
compared to corporate finance, 580–583, 581–582 table 19.1, 583 table 19.2
definition of, 580–583
structuring a deal, 584–588, 585 Fig. 19.1
capital structure for, 597–607
cash flow, 599, 600 Fig. 19.3, 600 table 19.3, 601 table 19.4, 609n. 3
contractors, 586–587
financial structure, 603 Fig. 19.4, 604 table 19.5, 605 table 19.6
lending banks, 588, 607–608
operators, 587
public administration, 587–588
purchasers, 587
risk, 588–597, 598 Fig. 19.2
sponsors, 585–586
suppliers, 587
valuing feasibility for, 597–607, 606 Fig. 19.5 (p. 913)
“prudent man” rule, 668
public-private partnership contracts (PPPs), 586
Puri, Manju
characteristics of entrepreneurs, 76
corporate venture capital, 138
financing constraints, 647 table 21.1
venture capital
and innovation outcomes, 137
and start-up firms, 154
impact on firm growth, 454 table 14.2
pushing entrepreneurs to expand aggressively, 453
value-added effects of, 457, 667
venture capitalists replacing founding entrepreneurs, 13, 39n. 4
Purnanandam, A. K., 499, 500 table 16.1, 502
Pyle, David H., 12, 472, 498, 522n. 5, 614, 628
Quill, Mark, 784 table 25.1, 802, 804, 812
Rai, Ashok S., 862 table 27.1, 877, 881, 885
railroad industry, 18–20, 39n. 5
Rajan, Raghuram G., 554, 641 table 21.1
asymmetric information, 343, 350
constraints, 655
E-banking, 361
family firms
capital structure of, 171
IPOs completed during optimistic analyst periods, 477
microbanking, 878, 883
project finance, 580
small business finance, 153, 471, 561 table 18.1, 564
availability of credit, 308
banking relationships, 164
creditor relationships, 339
relationship lending, 341, 344, 355
SPV security package, 595
trade credit, 340, 527 Fig. 17.1, 534, 540, 567
windows hypothesis, 478
Rating Fund of the Consultative Group to Assist the Poor (CGAP), 865
Rauch, A., 243 table 8.2, 245 table 8.2
RCA, 28
recession, 284, 309
relationship lending, 341–350, 346–349 table 11.2, 355
research and development investment, 284, 679n. 8
Research Corporation, 60
Reynolds, Paul D., 159, 165, 393, 781, 808
Ribi, Evelyn, 4, 657, 662, 664, 666, 679n. 4
Richardson, M., 481, 495, 499, 501
risk
assessment of, 239, 261, 377
attitudes related to private business equity, 109–130,