Economists and economic historians have generally understood different forms of land tenure as arrangements for the supply of labor. This paper suggests a different interpretation—that land-tenure arrangements be understood rather as arrangements for the supply of financing. The cost and availability of financing depend on the arrangements available to ensure the providers of the financing a fa...

It is well documented that the market-to-book ratio and profitability are two key capital structure determinants. However, because the related empirical evidence can be explained by both the tradeoff theory and the costly external financing theory (which includes both the pecking order theory and the market timing hypothesis), a large controversy remains in the finance literature regarding the ...

Prior work has established that the financing environment can impact firm strategy. We argue that this influence can shape the earliest strategic choices of a new venture by creating a potential tradeo↵ between two objectives: rapid growth and reaping the benefits of a positive reputation (glory). We identify a simple reputation-building strategic choice, naming the firm after the founder (epon...

In this paper we investigate the interplay between operational and financial decisions within the context of a two-echelon supply chain. A retailer purchases a single product from a supplier and afterwards sells it in the retail market to a random demand. The retailer, however, is budgetconstrained and is therefore limited in the number of units that he may purchase from the supplier. We study ...

We examine the impact of explicitly incorporating a measure of debt capacity in recent tests of competing theories of capital structure. Our main results are that if external funds are required, in the absence of debt capacity concerns, debt appears to be preferred to equity. Concerns over debt capacity largely explain the use of new external equity financing by publicly traded firms. Finally, ...

Smalland medium size enterprises are well known for being the backbone of the economy. They are the key factors of the economic growth as well as for innovating and developing products and services. Financial obstacles often occur for Swedish SMEs when they are searching for ways of financing the business. The lack of necessary financing to help SMEs’ businesses grow has been brought up in many...

We examine how the social structure of existing organizations influences the entrepreneurial process and suggest that resources accrue to entrepreneurs based on the structural position of their prior employers. We argue that information advantages allow individuals from entrepreneurially prominent prior firms to identify new opportunities. Entrepreneurial prominence also provides reputation ben...