Capital structure theory and new technology firms: is there a match?

摘要

Purpose - The purpose of this paper is to explore the extent to which various theories of capital structure "fit" in the case of new technology-based firms. Design/methodology/approach - This study uses data from the Kauffman Firm Survey, a longitudinal data set of over 4,000 firms in the USA. Descriptive statistics and multivariate results are provided. Findings - The authors' findings reveal that new technology-based firms demonstrate different financing patterns than firms that are not technology-based. Research limitations/implications - Although some support was found for both the Pecking Order and Life Cycle theories, the results also indicate that technology-based entrepreneurs are both willing and able to raise substantial amounts of capital from external sources. Practical implications - Technology-based entrepreneurs need external sources of equity, in particular, in order to launch and grow their firms. Originality/value - To the authors' knowledge, this is the first article to test specific theories of capital structure using a large sample of new technology-based firms in the USA.