| Title | What drives gearing in early-stage firms? Evidence from blue economy startups |
|---|---|
| ID_Doc | 76892 |
| Authors | Zhu, B; Liang, C; Mirza, N; Umar, M |
| Title | What drives gearing in early-stage firms? Evidence from blue economy startups |
| Year | 2023 |
| Published | |
| Abstract | In the blue economy start-ups play a critical role as they bring innovation, technology, and new business models, driving sustainable growth and development. However, blue start-ups also experience financing constraints and in this research, we evaluate the factors that drive their gearing ratio. Using a comprehensive sample of firms across twenty-seven EU member states between 2013 and 2020, we find a negative link between debt ratio and climatic and ocean disruptions. We also report a positive relationship between asset tangibility and gearing, while regulations have a negative influence on the choice of debt as the preferred mode of financing. Our findings also suggest that blue startups with more private equity, have a lower variation in their capital mix. Finally, the fundamentals play a favorable role to motivate the use of debt financing. These findings have important im-plications for blue start-ups and the related ecosystem. |
No similar articles found.