| 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 |
|
| DOI |
10.1016/j.jbusres.2023.113840 |
| 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. |
| Author Keywords |
Blue Economy; Startups; Gearing; Climate Change |
| Index Keywords |
Index Keywords |
| Document Type |
Other |
| Open Access |
Open Access |
| Source |
Social Science Citation Index (SSCI) |
| EID |
WOS:000972746300001 |
| WoS Category |
Business |
| Research Area |
Business & Economics |
| PDF |
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