TY  - UNPD
A1  - Hirsch, Julia
A1  - Walz, Uwe
T1  - The financing dynamics of newly founded firms
T2  - SAFE working paper series ; No. 153
N2  - Little evidence exists on the financing decisions of newly founded firms or on the financing dynamics of these firms over their life cycle. We aim to help filling this gap by investigating the financing dynamics of 2,456 French manufacturing firms founded between 2004 and 2006 through their legally required and reported financial statements. Because we observe significant heterogeneity in the financing decision in the firms' founding year, we focus on analyzing whether these differences widen, persist, or converge by using different convergence concepts. We identify a persistence-cum-convergence pattern. We find the existence of ß-convergence (implying that e.g. firms with lower initial levels of debt accumulate more debt over time) but not of σ-convergence (i.e. we observe an increase in the cross-sectional dispersion of the financing structure). We also show that the dynamics of financing matter for the growth path of the firms.
T3  - SAFE working paper - 153 
KW  - financing decisions
KW  - life-cycle
KW  - firm growth
KW  - newly founded firms
Y1  - 2016
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/41872
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30:3-418726
UR  - https://ssrn.com/abstract=2865558
IS  - This version: November 1, 2016
PB  - SAFE
CY  - Frankfurt am Main
ER  -