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dc.contributor.authorCarter, Saraen_UK
dc.contributor.authorVos, Eden_UK
dc.contributor.authorYeh, Andy Jia-Yuhen_UK
dc.contributor.authorTagg, Stephenen_UK
dc.description.abstractWe examine two data sets, one from the UK (n = 15,750) and one from the US (n = 3239), to show that SME financial behaviour demonstrates substantial financial contentment, or ‘happiness’. We find fewer than 10% of the UK firms seek significant growth and only 1.32% of US firms list a shortage of capital other than working capital as a problem. Financial performance indicators (growth, return on assets, profit margin) were not found to be determinants of SME financing activities, as might be expected in a ‘rational’ risk–return environment. Younger and less educated SME owners more actively use external financing – even though more education reduces the fear of loan denial – while older and more educated (‘wiser’) SME owners are found to be being less likely to seek or use external financing. The contentment hypothesis for SME financing also extends to high-growth firms in that we show that they participate more in the loan markets than low-growth firms. By way of contrast to the finance gap hypothesis, the contentment hypothesis observes the importance of social networks (connections) [for finance] and confirms the ‘connections – happiness’ linkage in the literature on happiness while doubting the theoretical suitability of Jensen and Meckling [Jensen, M., Meckling, W., 1976. Theory of the firm: Managerial behavior, agency costs, and ownership structure. Journal of Financial Economics 3, 305–360.] base-case analysis for SMEs.en_UK
dc.relationCarter S, Vos E, Yeh AJ & Tagg S (2007) The Happy Story of Small Business Financing. Journal of Banking and Finance, 31 (9), pp. 2648-2672.
dc.rightsThe publisher does not allow this work to be made publicly available in this Repository. Please use the Request a Copy feature at the foot of the Repository record to request a copy directly from the author; you can only request a copy if you wish to use this work for your own research or private study.en_UK
dc.subjectSmall business Financeen_UK
dc.subjectEconomic development.en_UK
dc.titleThe Happy Story of Small Business Financingen_UK
dc.typeJournal Articleen_UK
dc.rights.embargoreason[JBF Vos et al.pdf] The publisher does not allow this work to be made publicly available in this Repository therefore there is an embargo on the full text of the work.en_UK
dc.citation.jtitleJournal of Banking and Financeen_UK
dc.type.statusVoR - Version of Recorden_UK
dc.contributor.affiliationUniversity of Waikatoen_UK
dc.contributor.affiliationReserve Bank of New Zealanden_UK
dc.contributor.affiliationUniversity of Strathclydeen_UK
rioxxterms.typeJournal Article/Reviewen_UK
local.rioxx.authorCarter, Sara|en_UK
local.rioxx.authorVos, Ed|en_UK
local.rioxx.authorYeh, Andy Jia-Yuh|en_UK
local.rioxx.authorTagg, Stephen|en_UK
local.rioxx.projectInternal Project|University of Stirling|
local.rioxx.filenameJBF Vos et al.pdfen_UK
Appears in Collections:Management, Work and Organisation Journal Articles

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