The relevance of pecking order hypothesis for the financing of computer software and biotechnology small firms: Some UK evidence

International Entrepreneurship and Management Journal

Volumn 6, Issue 3, 2010, Pages 301-315

  Ullah, Farid ^a   Abbas, Qaisar ^a   Akbar, Saeed ^b  

^a Department of Electrical Computer Engineering   (Pakistan)

^b UNIVERSITY OF LIVERPOOL MANAGEMENT SCHOOL   (United Kingdom)

Author keywords

Biotechnology and software; Entrepreneurship; Finance; HTSFs; Innovation; Pecking order hypothesis; Small firms; Venture capital

Indexed keywords

EID: 77955415112     PISSN: 15547191     EISSN: 15551938     Source Type: Journal    
DOI: 10.1007/s11365-008-0105-0     Document Type: Article

References (37)

1. Admati, A. R., & Pfleiderer, P. (1994). Robust financial contracting and the role of venture capitalists. The Journal of Finance, XLIX(2), 371-401. doi: 10. 2307/2329157.
2. Advisory Council on Science and Technology (ACOST) (1990). The enterprise challenge: Overcoming barriers to growth in small firms. London: HMSO.
3. Aghion, P., & Bolton, P. (1992). An incomplete contracts approach to financial contracting. The Review of Economic Studies, 59, 473-494. doi: 10. 2307/2297860.
4. Amit, R., Gloston, L., & Muller, E. (1990). Entrepreneurial ability, venture investments and risk sharing. Management Science, 36(10), 1232-1245.
5. Bank of England (2001). The financing of technology-based small firms. Domestic Finance Division.
6. Bergemann, D., & Hedge, U. (1998). Venture capital financing, moral hazard and learning. Journal of Banking & Finance, 22, 703-735. doi: 10. 1016/S0378-4266(98)00017-X.
7. Berger, A. N., & Udell, G. F. (1998). The economics of small business finance: The roles of private equity and debt markets in the financial growth cycle. Journal of Banking & Finance, 22, 613-673. doi: 10. 1016/S0378-4266(98)00038-7.
8. Bolton, E. J. (1971). Small firms: Report of the committee of inquiry on small firms. London: HMSO
9. Cable, D. M., & Shane, S. (1997). A prisoner's dilemma approach to entrepreneur-venture capitalist relationships. Academy of Management Review, 22(1), 142-176. doi: 10. 2307/259227.
10. Chan, Y.-S., Siegel, D., & Thakor, A. V. (1990). Learning corporate control and performance requirements in venture capital contracts. International Economic Review, 31(2), 365-381. doi: 10. 2307/2526845.
11. Clark, J., & Guy, K. (1998). Innovation and competitiveness: A review. Technology Analysis and Strategic Management, 10(3), 363-395. doi: 10. 1080/09537329808524322.
12. Confederation of British Industry. (1997). Tec Stars: Breaking the growth barriers for technology-based SMEs. Report of the Tec Stars Working Group, CBI.
13. Cressy, R., & Oloffson, C. (1997). European SME financing: an overview. Small Business Economics, 9, 87-96. doi: 10. 1023/A: 1007921004599.
14. Demsetz, H. (1969). Information and efficiency: Another viewpoint. The Journal of Law & Economics, 12, 1-22.
15. Dewatripont, M., & Tirole, J. (1994). A theory of debt and equity: Diversity of securities and manager-shareholder congruence. The Quarterly Journal of Economics, 109, 1027-1053. doi: 10. 2307/2118355.
16. Fama, E. F., Jensen, M. C. (1983). Separation of ownership and control. Journal of Law and Economics, XXVI.
17. Himmelberg, C. P., & Peterson, B. C. (1994). R& D and internal finance: A panel study of small firms in high-tech industries. The Review of Economics and Statistics, 76, 38-51. doi: 10. 2307/2109824.
18. Hogan, T., & Hutson, E. (2005). Capital structure in new technology-based firms: Evidence from the Irish software sector. Global Finance Journal, 15, 369-387. doi: 10. 1016/j. gfj. 2004. 12. 001.
19. House of Lords (1997). The innovation-exploitation barrier: Select committee on science and technology. Third Report.
20. Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm, managerial behaviour, agency costs and ownership structure. Journal of Financial Economics, 3, 305-360. doi: 10. 1016/0304-405X(76)90026-X.
21. Jordan, J., Lowe, J., & Taylor, P. (1998). Strategy and financial policy in UK small firms. Journal of Business Finance & Accounting, 25, 1-27. doi: 10. 1111/1468-5957. 00176.
22. Kazanjian, R. K. (1988). Relation of dominant problems to stages of growth in technology-based new ventures. Academy of Management Journal, 31(2), 257-279. doi: 10. 2307/256548.
23. Leland, H. E., & Pyle, D. H. (1977). Informational asymmetries, financial structure, and financial intermediation. The Journal of Finance, XXXII(2), 371-387. doi: 10. 2307/2326770.
24. Modigliani, F., & Miller, M. H. (1958). The cost of capital, corporation finance and the theory of investment. The American Economic Review, XLVIII(3), 261-297.
25. Murray, G. C., & Lott, J. (1995). Have UK venture capital firms a bias against investment in new technology-based firms? Research Policy, 24, 283-299. doi: 10. 1016/0048-7333(93)00767-N.
26. Myers, S. C. (1984). The capital structure puzzle. The Journal of Finance, XXXIX(3), 575-592. doi: 10. 2307/2327916.
27. Myers, S. C., & Majluf, N. C. (1984). Corporate financing and investment decisions when firms have information that investors do not have. Journal of Financial Economics, 13, 187-221. doi: 10. 1016/0304-405X(84)90023-0.
28. Ndonzuau, F. N., Pirnay, F., & Surlemont, B. (2002). A stage model of academic spin-off creation. Technovation, 22, 281-289. doi: 10. 1016/S0166-4972(01)00019-0.
29. Oakey, R. P. (2003). Funding innovation and growth in UK new technology-based firms: Some observations on contributions from the public and private sectors. Venture Capital, 5(2), 161-180. doi: 10. 1080/1369106032000097049.
30. Sahlman, W. A. (1990). The structure and governance of venture capital organisations. Journal of Financial Economics, 27, 473-521. doi: 10. 1016/0304-405X(90)90065-8.
31. Trester, J. J. (1998). Venture capital contracting under asymmetric information. Journal of Banking & Finance, 22, 675-699. doi: 10. 1016/S0378-4266(98)00013-2.
32. Ullah, F. (2005). Financing of Technology-based Small Firms and the Role of Location: Evidence from the United Kingdom, Unpublished PhD Thesis.
33. Westhead, P., & Storey, D. J. (1997). Financial constraints on the growth of high technology small firms in the United Kingdom. Applied Financial Economics, 7, 197-201. doi: 10. 1080/096031097333763.
34. Williams, P. (1998). Financing of high-technology businesses: a report to the Paymaster General, Report of the HMT-sponsored Working Group chaired by Sir Peter Williams.
35. Wilson, H. (1979). The financing of small firms: Interim Report of the Committee to Review the Functioning of Financial Institutions. London: HMSO.
36. Wright, M., & Robbie, K. (1996). Venture capitalists, unquoted equity investment appraisal and the role of accounting information. Accounting and Business Review, 26(2), 153-168.
37. Wright, M., & Robbie, K. (1998). Venture capital and private equity: A review and synthesis. Journal of Business Finance and Accounting, 25(5-6), 521-570.