EconStor >
Zentrum für Europäische Wirtschaftsforschung (ZEW), Mannheim >
ZEW Discussion Papers >

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10419/24107
  

Full metadata record

DC FieldValueLanguage
dc.contributor.authorMüller, Elisabethen_US
dc.date.accessioned2009-02-16T14:48:53Z-
dc.date.available2009-02-16T14:48:53Z-
dc.date.issued2005en_US
dc.identifier.urihttp://hdl.handle.net/10419/24107-
dc.description.abstractThis paper identifies the entrepreneur's exposure to idiosyncratic risk as an important determinant of the capital structure of private companies. The exposure to idiosyncratic risk is approximated by the share of personal net worth invested in one company (SNWI). Exposure to idiosyncratic risk increases cost of equity capital since higher equity returns are required as compensation. This makes bank financing more attractive. We find that SNWI increases the demand for new bank loans whereas we cannot identify an effect on the supply. Equilibrium values of leverage increase significantly in SNWI but there is no effect on the equilibrium interest rate.en_US
dc.language.isoengen_US
dc.publisherZentrum für Europäische Wirtschaftsforschung (ZEW) Mannheim-
dc.relation.ispartofseriesZEW Discussion Papers 05-14en_US
dc.relation.hasversionhttp://hdl.handle.net/10419/28611-
dc.subject.jelG30en_US
dc.subject.jelG32en_US
dc.subject.ddc330en_US
dc.subject.keywordentrepreneurial investmenten_US
dc.subject.keywordcapital structureen_US
dc.subject.keywordunderdiversificationen_US
dc.subject.keywordprivate companiesen_US
dc.subject.stwKapitalstrukturen_US
dc.subject.stwEigenkapitalen_US
dc.subject.stwKapitalkostenen_US
dc.titleHow Does Owners' Exposure to Idiosyncratic Risk Influence the Capital Structure of Private Companies?en_US
dc.typeWorking Paperen_US
dc.identifier.ppn482848898en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
dc.identifier.repecRePEc:zbw:zewdip:2904-
Appears in Collections:ZEW Discussion Papers
Publikationen von Forscherinnen und Forschern des ZEW

Files in This Item:
File Description SizeFormat
dp0514.pdf267.09 kBAdobe PDF
No. of Downloads: Counter Stats
Show simple item record
Download bibliographical data as: BibTeX

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.