Naslov
Is experience of the owner a determinant of SME's capital structure?

Autori
Delić, Anamarija

Vrsta, podvrsta i kategorija rada
Radovi u zbornicima skupova, cjeloviti rad (in extenso), znanstveni

Izvornik
12th International Conference Challenges of Europe: Innovative Responses for Resilient Growth and Competitiveness / Pavić, Ivan ; Muštra, Vinko ; Visković, Josip - Split : Bol : Brač : Ekonomski fakultet Sveučilišta u Splitu, 2017, 207-218

Skup
Innovative Responses for Resilient Growth and Competitiveness

Mjesto i datum
Bol, Hrvatska, 17.05.2017. - 19.05.2017

Vrsta sudjelovanja
Predavanje

Vrsta recenzije
Međunarodna recenzija

Ključne riječi
Capital structure, Small and medium-sized companies, Experience on the market, Networking, Decision-making process

Sažetak
The purpose of this paper is to test whether the experience of the owner of an SME can affect the capital structure decision-making process. Experience in the market, especially in the same industry, greatly affects company profitability. Through experience in the market, SME owners can develop networking ; easily collect the necessary information, as well as information about available financial resources. Hence, the owners of SMEs with 10 or more years of experience will use it more during the capital structure decision-making process. Experience in the market can be seen as experience in managing a small company, “guts” for making good decisions, knowledge about advantages of different sources of finance, or even who on the market (from direct or indirect competitors) should be copied. In crisis situations, when access to capital is even more restricted, those owner/manager characteristics should be more visible and secure competitive advantage. Overall, prior literature offers mixed results on capital structure decisions during crisis, which opens the question about importance and influence of owners/managers’ prior experience in the capital structure decision making process. A sample of 108 Croatian SMEs from different industries was used to test whether there is a correlation between experience as an important determinant and the capital structure of SMEs. The research has been conducted during a period when the national economy was in constant decline. It is assumed that during this time owners of SMEs will profusely use their knowledge and experience in order to keep their competitive position in the market. Results show that there is no single determinant in the capital structure decision-making process that can be seen as crucial, but also that lack of experience can be crucial for a company’s survival.

Izvorni jezik
Engleski

Znanstvena područja
Ekonomija

POVEZANOST RADA