How Do SMEs with Single and Multiple Owners Finance Their Operations Differently? Empirical Evidence from China
Article first published online: 19 AUG 2013
© 2013 Wiley Periodicals, Inc.
Thunderbird International Business Review
Volume 55, Issue 5, pages 531–544, September/October 2013
How to Cite
Newman, A., Borgia, D. and Deng, Z. (2013), How Do SMEs with Single and Multiple Owners Finance Their Operations Differently? Empirical Evidence from China. Thunderbird Int'l Bus Rev, 55: 531–544. doi: 10.1002/tie.21568
- Issue published online: 19 AUG 2013
- Article first published online: 19 AUG 2013
We study the impact of firm-level characteristics on the capital structures of private small and medium-sized enterprises (SMEs) as well as the differences between the capital structures adopted by SMEs with single and multiple owners in China. Our findings highlight the limited use of asset-based financing by Chinese SMEs. We also find that the propensity of SMEs with single-owners to use external debt was significantly less than those with multiple owners. Furthermore, our findings suggest that single-owned firms are subject to a more constrained pecking order than those with multiple owners. © 2013 Wiley Periodicals, Inc.