Please use this identifier to cite or link to this item: http://hdl.handle.net/11328/3453
Title: Does Venture Capital affect capital structure rebalancing? The case of small knowledge-intensive service firms
Authors: Sardo, Filipe
Serrasqueiro, Zélia
Félix, Elisabete G.S.
Keywords: Capital structure rebalancing
Small knowledge-intensive service firms
Venture Capital
Europe
Issue Date: 2020
Publisher: Elsevier
Citation: Sardo, F., Serrasqueiro, Z., & Félix, Elisabete G.S. (2020). Does Venture Capital affect capital structure rebalancing? The case of small knowledge-intensive service firms. Structural Change and Economic Dynamics, 53, 170-179. Disponível no Repositório UPT, http://hdl.handle.net/11328/3453
Abstract: This study analyses small knowledge-intensive service (SKIS) firms’ capital structure rebalancing, before and after Venture Capital (VC) entry. We use data for a sample of 1161 Western European SKIS firms, for the period 2006–2015. Two sub-samples were created: one composed of firms before VC entry; the other composed of SKIS firms after VC treatment. We use panel data models and the system GMM (1998) dynamic estimator. The results obtained suggest that after VC entry, SKIS firms are close to the predictions of the pecking order theory. Therefore, SKIS firms after VC participation on firm equity, probably become less dependent on debt, choosing internal finance to fund assets that are firm-specific or have an intangible nature, and, hence cannot be pledged as collaterals.
URI: http://hdl.handle.net/11328/3453
ISSN: 0954-349X
Appears in Collections:REMIT – Artigos em Revistas Internacionais / Papers in International Journals



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