TY  - JOUR
AB  - 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.
VL  - 35
IS  - 2
SN  - 2040-8269
DO  - 10.1108/01409171211195143
UR  - https://doi.org/10.1108/01409171211195143
AU  - Coleman Susan
AU  - Robb Alicia
PY  - 2012
Y1  - 2012/01/01
TI  - Capital structure theory and new technology firms: is there a match?
T2  - Management Research Review
PB  - Emerald Group Publishing Limited
SP  - 106
EP  - 120
Y2  - 2024/04/19
ER  -