Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/24698
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dc.contributor.authorMüller, Elisabethen_US
dc.date.accessioned2009-02-16T14:58:56Z-
dc.date.available2009-02-16T14:58:56Z-
dc.date.issued2006en_US
dc.identifier.urihttp://hdl.handle.net/10419/24698-
dc.description.abstractThis paper identifies the entrepreneur's exposure to idiosyncratic risk as an important determinant of the demand for loans and the capital structure. The analysis is based on a sample of small and medium-sized private companies from the United States. The exposure to idiosyncratic risk is approximated by the share of personal net worth invested in one company (SNWI). Exposure to idiosyncratic risk increases the cost of equity capital, since higher equity returns are required as compensation. This therefore makes bank financing more attractive. We find that SNWI increases both the demand for new bank loans and leverage substantially.en_US
dc.language.isoengen_US
dc.publisher|aZentrum für Europäische Wirtschaftsforschung (ZEW) |cMannheim-
dc.relation.ispartofseries|aZEW Discussion Papers |x05-14 [rev.]en_US
dc.relation.isversionofhttp://hdl.handle.net/10419/24107-
dc.subject.jelG32en_US
dc.subject.jelG30en_US
dc.subject.ddc330en_US
dc.subject.keywordcapital structureen_US
dc.subject.keywordexposure to idiosyncratic risken_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.ppn561220190en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
dc.identifier.repecRePEc:zbw:zewdip:7184-

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