Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/24107 
Full metadata record
DC FieldValueLanguage
dc.contributor.authorMüller, Elisabethen
dc.date.accessioned2009-02-16T14:48:53Z-
dc.date.available2009-02-16T14:48:53Z-
dc.date.issued2005-
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
dc.language.isoengen
dc.publisher|aZentrum für Europäische Wirtschaftsforschung (ZEW) |cMannheimen
dc.relation.ispartofseries|aZEW Discussion Papers |x05-14en
dc.relation.hasversionhttp://hdl.handle.net/10419/28611en
dc.subject.jelG30en
dc.subject.jelG32en
dc.subject.ddc330en
dc.subject.keywordentrepreneurial investmenten
dc.subject.keywordcapital structureen
dc.subject.keywordunderdiversificationen
dc.subject.keywordprivate companiesen
dc.subject.stwKapitalstrukturen
dc.subject.stwEigenkapitalen
dc.subject.stwKapitalkostenen
dc.titleHow Does Owners' Exposure to Idiosyncratic Risk Influence the Capital Structure of Private Companies?-
dc.typeWorking Paperen
dc.identifier.ppn482848898en
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen
dc.identifier.repecRePEc:zbw:zewdip:2904en

Files in This Item:
File
Size
267.09 kB





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