Is Age a Determinant of SMEs’ Financing Decisions? Empirical Evidence Using Panel Data Models

Using panel data models, this study investigates whether firm's age is a determinant of Portuguese SMEs’ financing decisions. The results suggest that age is relevant for: the impact of financial deficit on variations of short– and long–term debt; the level of adjustment of short– and long–term debt toward the respective optimal levels; and the relationships between usual determinants and short– and long–term debt. The results for young and old...