Bitte verwenden Sie diesen Link, um diese Publikation zu zitieren, oder auf sie als Internetquelle zu verweisen: https://hdl.handle.net/10419/24107 
Neuere Version: 
Autor:innen: 
Erscheinungsjahr: 
2005
Schriftenreihe/Nr.: 
ZEW Discussion Papers No. 05-14
Verlag: 
Zentrum für Europäische Wirtschaftsforschung (ZEW), Mannheim
Zusammenfassung: 
This 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.
Schlagwörter: 
entrepreneurial investment
capital structure
underdiversification
private companies
JEL: 
G30
G32
Dokumentart: 
Working Paper

Datei(en):
Datei
Größe
267.09 kB





Publikationen in EconStor sind urheberrechtlich geschützt.