Short- and long-term debt determinants in Swedish SMEs
2017 (English)In: Review of Accounting and Finance, ISSN 1475-7702, E-ISSN 1758-7700, Vol. 16, no 1, 106-124 p.Article in journal (Refereed) Published
Purpose: This paper aims to empirically investigate the capital structure determinants of small and medium-sized enterprises (SMEs) with a particular focus on short- and long-term debt. Design/methodology/approach: Several methods were used to analyse a sample of 15,897 Swedish SMEs for which complete financial information was available for a four-year period following the 2008 financial crisis, i.e. the 2009-2012 period. Findings: The results indicate that eight explanatory variables - i.e. size, age, growth, proftability, liquidity, asset tangibility, non-debt tax shields and industry affliation - are associated to various extents with SME debt policy. Research limitations/implications - The current study is limited to examining a sample of Swedish SMEs in five industry sectors covering the 2009-2012 period. Further research could examine the generalizability of the present results by considering other countries, industry sectors and periods. Practical implications - As debt policy infuences firm performance, value and survival, SME owners and managers, regulators and financial institutions may beneft from studies considering a relatively large number of capital structure determinants, several of which are linked to short- and long-term debt in various ways. Originality/value: This study is one of the few to examine the determinants of short- and long-term debt in SMEs, which play a fundamental role in the economy, using a large-scale cross-sectional database covering a period following the 2008 financial crisis.
Place, publisher, year, edition, pages
2017. Vol. 16, no 1, 106-124 p.
Capital structure, Debt policy, SMEs
IdentifiersURN: urn:nbn:se:miun:diva-30358DOI: 10.1108/RAF-08-2015-0118ScopusID: 2-s2.0-85011866767OAI: oai:DiVA.org:miun-30358DiVA: diva2:1077542