Formal and informal financing decisions of small businesses
Bibliographic Data
| ID | 14868249 |
|---|---|
| Authors | Bach Nguyen (0000-0003-1527-7443, Aston University, corresponding author), Canh Phuc Nguyen (0000-0001-8467-5010, University of Economics Ho Chi Minh City), Nguyen Phuc Canh |
| Year | 2021 |
| Volume | 57 |
| Issue | 3 |
| Pages | 1545-1567 |
| Publication date | 2021-10-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Small Business Economics (JOURNAL) |
| Journal identifiers | ISSN: 0921-898X • E-ISSN: 1573-0913 |
| Publisher | Springer Science and Business Media LLC (PUBLISHER) |
| DOI | 10.1007/s11187-020-00361-9 |
| OpenAlex | W3017342876 |
| Language | EN |
| Citations received | 19 |
| References cited | 80 |
This study investigates small businesses’ financing decisions. Drawing upon asymmetric information theory, institutional theory and relevant literature on cognitive financial constraints, human capital and social capital, we propose a theoretical framework in which financing determinants come from three dimensions: entrepreneurs’ individual factors, organisational (firm-level) factors and contextual (institutional) factors. We employ this model to distinguish four types of firms: (1) firms that use no external finance, (2) firms that use informal finance only, (3) firms that use formal finance only and (4) firms that use both formal and informal finance. An empirical test on Vietnamese small businesses shows that factors from all three dimensions are important in understanding small businesses’ financing decisions
Business · Capital structure · Empirical research · Entrepreneurial finance · Entrepreneurship · External financing · Information asymmetry · Internal financing · Vietnamese · Corporate Finance and Governance · Family Business Performance and Succession · Private Equity and Venture Capital · Finance
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| Unique citing works | 19 |
|---|---|
| Citations per year | 3,8 |
| Citation span | 2021 - 2026 (6) |
| Citation velocity | current |
| Highly cited | No |
| Citation types | Neutral: 19 |