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THE ROLE OF LEGAL STATUS IN INFLUENCING BANK FINANCING AND NEW FIRM GROWTH

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UNSPECIFIED (1994) THE ROLE OF LEGAL STATUS IN INFLUENCING BANK FINANCING AND NEW FIRM GROWTH. APPLIED ECONOMICS, 26 (2). pp. 129-136.

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Abstract

This paper examines the characteristics of new firm founders who use loans and overdrafts from the clearing banks to finance initially their business. Bank lending to new firms appears unrelated to the personal characteristics of founders, but related to whether individuals provide personal savings and the legal status of the business. This contrasts with the factors which influence the growth of new firms. Here, the founder's age, employment status and birthplace are associated with larger firms. The only variable which appears to influence consistently both bank lending and the employment growth in firms is whether or not the business is a limited company

Item Type: Journal Article
Subjects: H Social Sciences > HC Economic History and Conditions
Journal or Publication Title: APPLIED ECONOMICS
Publisher: ROUTLEDGE
ISSN: 0003-6846
Official Date: February 1994
Dates:
DateEvent
February 1994UNSPECIFIED
Volume: 26
Number: 2
Number of Pages: 8
Page Range: pp. 129-136
Publication Status: Published

Data sourced from Thomson Reuters' Web of Knowledge

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