Attracting early-stage investors: Is debt a deterrent or an incentive?

Mircea Epure; M. Guasch

doi:10.5465/AMBPP.2016.126

Attracting early-stage investors: Is debt a deterrent or an incentive?

Mircea Epure
, M. Guasch

Research output: Conference paper › Contribution › peer-review

Abstract

This study analyzes the relationship between debt and outside equity investments in entrepreneurial firms. We show that debt, and in particular business debt, is positively related to early-stage outside equity investments. We posit that higher indebted firms can send more credible signals to investors and thus, attract more outside equity.

Original language	English
Pages	1383-1388
Number of pages	6
DOIs	https://doi.org/10.5465/AMBPP.2016.126
Publication status	Published - 2016
Externally published	Yes
Event	76th Annual Meeting of the Academy of Management, AOM 2016 - Anaheim, United States Duration: 5 Aug 2016 → 9 Aug 2016

Conference

Conference	76th Annual Meeting of the Academy of Management, AOM 2016
Country/Territory	United States
City	Anaheim
Period	5/08/16 → 9/08/16

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 9 Industry, Innovation, and Infrastructure

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10.5465/AMBPP.2016.126

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title = "Attracting early-stage investors: Is debt a deterrent or an incentive?",

abstract = "This study analyzes the relationship between debt and outside equity investments in entrepreneurial firms. We show that debt, and in particular business debt, is positively related to early-stage outside equity investments. We posit that higher indebted firms can send more credible signals to investors and thus, attract more outside equity.",

author = "Mircea Epure and M. Guasch",

year = "2016",

doi = "10.5465/AMBPP.2016.126",

language = "English",

pages = "1383--1388",

note = "76th Annual Meeting of the Academy of Management, AOM 2016 ; Conference date: 05-08-2016 Through 09-08-2016",

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T2 - 76th Annual Meeting of the Academy of Management, AOM 2016

AU - Epure, Mircea

AU - Guasch, M.

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N2 - This study analyzes the relationship between debt and outside equity investments in entrepreneurial firms. We show that debt, and in particular business debt, is positively related to early-stage outside equity investments. We posit that higher indebted firms can send more credible signals to investors and thus, attract more outside equity.

AB - This study analyzes the relationship between debt and outside equity investments in entrepreneurial firms. We show that debt, and in particular business debt, is positively related to early-stage outside equity investments. We posit that higher indebted firms can send more credible signals to investors and thus, attract more outside equity.

UR - https://www.scopus.com/pages/publications/85026248982

U2 - 10.5465/AMBPP.2016.126

DO - 10.5465/AMBPP.2016.126

M3 - Contribution

AN - SCOPUS:85026248982

SP - 1383

EP - 1388

Y2 - 5 August 2016 through 9 August 2016

ER -

Attracting early-stage investors: Is debt a deterrent or an incentive?

Abstract

Conference

UN SDGs

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