Skip to Main Content
 

Global Search Box

 
 
 
 

Files

File List


Dissertation_Zilong_Liu_final.pdf (1.27 MB)

ETD Abstract Container

Abstract Header

Two Essays on Entrepreneurial Finance

Liu, Zilong
http://rave.ohiolink.edu/etdc/view?acc_num=kent1463607076

Abstract Details

2016, PHD, Kent State University, College of Business and Entrepreneurship, Ambassador Crawford / Department of Finance.
This dissertation contains two essays that study the credit channel and ownership structure in entrepreneurial firms. In the first essay, we study the trade credit and bank credit usage among entrepreneurial firms. Even during the latest credit crunch, there is no substitution between supplier and bank lending among the young firms. The overwhelming majority of firms borrowing from suppliers have sufficient undrawn amounts in their revolving bank lines to cover their financing needs. When firms have trouble obtaining bank credit, trade credit actually declines. Therefore, supplier lending is unlikely to be the financing form of last resort. Suppliers’ lending decisions are primarily driven by a client’s sales, whereas banks’ lending decisions are not tied to firms’ financial conditions. Availability of trade credit does not help to obtain bank credit, and vice versa. In the second essay, we examine ownership structure among a panel of entrepreneurial firms. Variations in these firms’ ownership structure are overwhelmingly determined by the unobserved firm fixed effects. After we control for firm fixed effects, there is no relation between ownership structure and firm performance. More importantly, despite a lack of resale markets for their shares, these firms show substantial ownership structure changes over time, and growth potential and demand for external capital seems to be main reason why some firms dilute their ownership structure. Using both a propensity score matching method and a difference-in-difference regression method, we do not find evidence that ownership structure changes affect subsequent firm performance among our sample firms. Finally, ownership structure does not affect firms’ survival probability.
Xiaoling Pu (Committee Co-Chair)
Michael Hu (Committee Co-Chair)
John Thornton (Committee Member)
117 p.
Finance
Trade credit; bank credit; entrepreneurial finance; ownership concentration; ownership-performance relation; financially constrained; substitution between bank credit and trade credit

Recommended Citations

Citations

  • Liu, Z. (2016). Two Essays on Entrepreneurial Finance [Doctoral dissertation, Kent State University]. OhioLINK Electronic Theses and Dissertations Center. http://rave.ohiolink.edu/etdc/view?acc_num=kent1463607076

    APA Style (7th edition)

  • Liu, Zilong. Two Essays on Entrepreneurial Finance. 2016. Kent State University, Doctoral dissertation. OhioLINK Electronic Theses and Dissertations Center, http://rave.ohiolink.edu/etdc/view?acc_num=kent1463607076.

    MLA Style (8th edition)

  • Liu, Zilong. "Two Essays on Entrepreneurial Finance." Doctoral dissertation, Kent State University, 2016. http://rave.ohiolink.edu/etdc/view?acc_num=kent1463607076

    Chicago Manual of Style (17th edition)

kent1463607076
1,274
© 2016, all rights reserved.
This open access ETD is published by Kent State University and OhioLINK.