A longitudinal comparison of capital structure between young for-profit social and commercial enterprises
Abstract
Abstract We develop a new perspective on capital structure differences between for-profit social and commercial enterprises by combining imprinting and social entrepreneurship theory. Using a longitudinal matched sample, we find that for-profit social enterprises have 40% to 13% lower leverage and up to four times greater leverage stability over time than commercial enterprises. Our results suggest that these differences in capital structure derive from the process of prosocial organizing, which goes beyond the primary focus on financial preferences. Thus, for-profit social enterprises-and similar hybrid organizations, such as B corporations-may require theories adjusted to their context.
Cite as
Siqueira, A. C. O., Guenster, N., Vanacker, T., & Crucke, S. (2018). A longitudinal comparison of capital structure between young for-profit social and commercial enterprises. Journal of Business Venturing, 33(2), 225–240.Details
Publication type
Research article (journal)
Peer reviewed
Yes
Publication status
Published
Year
2018
Journal
Journal of Business Venturing
Volume
33
Issue
2
Start page
225
End page
240
Language
English
ISSN
0883-9026
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