Trust and SME attitudes towards equity financing across Europe

Volume: 54, Issue: 6, Pages: 101003 - 101003
Published: Dec 1, 2019
Abstract
The decision by a small and medium-sized enterprise (SME) to take on equity requires trust, due to reliance on the good intentions of the parties involved. Drawing on a social capital perspective, we argue that national interpersonal and institutional trust positively influences SME attitudes towards equity financing. We also hypothesize a substitution effect between interpersonal and institutional trust. Through a large survey of European SMEs...
Paper Details
Title
Trust and SME attitudes towards equity financing across Europe
Published Date
Dec 1, 2019
Volume
54
Issue
6
Pages
101003 - 101003
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