Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/309533 
Year of Publication: 
2023
Citation: 
[Journal:] Credit and Capital Markets – Kredit und Kapital [ISSN:] 2199-1235 [Volume:] 56 [Issue:] 3-4 [Year:] 2023 [Pages:] 313-351
Publisher: 
Duncker & Humblot, Berlin
Abstract: 
This study investigates the financing decisions within German SMEs, examining firm-specific, macroeconomic, and news-related determinants. Utilizing a 10-year dataset encompassing 13,051 SMEs, we employ a dynamic panel data model with an unbiased Dynamic Panel Fractional (DPF) estimator to identify the key variables influencing the debt-to-equity ratio. The findings underscore the importance of factors such as the non-debt tax shield, firm size, interest rate spread, and the economic policy uncertainty index. The study's findings propose the following policy implications: 1) Policy initiatives targeting firm size and non-debt tax shields affect SME leverage; 2) Policies addressing the term spread and economic uncertainty influence debt levels across various German industries; 3) Industry-specific SME policies are advisable, due to the significant industry effects on German SME leverage; 4) SME policy incentives yield short-term effects on capital structures, as SMEs adjust leverage within 8 months.
Subjects: 
SME policy
capital structure
SMEs
financing decisions
leverage
panel data
JEL: 
G32
G38
L25
L26
M13
C23
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

Files in This Item:
File
Size





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