The Oxford Handbook of Entrepreneurial Finance

Edited by Douglas Cumming

Oxford Handbooks

Comprehensive source of material on Entrepreneurial Finance
Timely information that covers international evidence over booms and bust periods, including the recent financial crisis

The Oxford Handbook of Entrepreneurial Finance

Edited by Douglas Cumming

Description

The topic of Entrepreneurial Finance involves many issues, including but not limited to the risks and returns to being an entrepreneur, financial contracting, business planning, capital gaps and the availability of capital, market booms and busts, public policy and international differences in entrepreneurial finance stemming from differences in laws, institutions and culture. As these issues are so extremely broad and complex, the academic and practitioner literature on topic usually focuses on at most one or two of these issues at one time. The Oxford Handbook of Entrepreneurial Finance provides a comprehensive picture of issues dealing with different sources of entrepreneurial finance and different issues with financing entrepreneurs. The Handbook comprises contributions from 48 authors based in 12 different countries. The Handbook is organized into seven parts, the first of which introduces the issues, explains the organization of the handbook, and briefly summarizes the contributions made by the authors in each of the chapters. Part II covers the topics pertaining to financing new industries and the returns and risk to being an entrepreneur. Part III deals with entrepreneurial capital structure. Part IV discusses business planning, funding and funding gaps in entrepreneurial finance with a focus on credit markets. Part V provides analyses of the main alternative sources of entrepreneurial finance. Part VI considers issues in public policy towards entrepreneurial finance. Part VII considers international differences in entrepreneurial finance, including analyses of entrepreneurial finance in weak institutional environments as well as microfinance.

The Oxford Handbook of Entrepreneurial Finance

Edited by Douglas Cumming

Oxford Handbooks

Part I. Introduction
Chapter 1
"Introduction to the Handbook of Entrepreneurial Finance "
Douglas Cumming, York University Schulich School of Business
Part II. Financing New Industries and the Returns and Risk to Entrepreneurship
Chapter 2
"Finance of New Industries "
Brent Goldfarb, University of Maryland, David Kirsch, University of Maryland, and April Shen, University of Maryland
Chapter 3
"The Returns to Entrepreneurship "
Thomas Åstebro, HEC-Paris
Chapter 4
"Risk Attitudes and Private Business Equity "
Frank Fossen, German Institute for Economic Research (DIW Berlin)
Chapter 5
"New Firm Financing and Performance "
Sheryl Winston Smith, Temple University
Part III. Entrepreneurial Capital Structure
Chapter 6
"New Perspectives on Entrepreneurial Capital Structure "
David Robinson, Duke University Fuqua School of Business
Chapter 7
"The Capital Structure of Family Firms "
Markus Ampenberger, Technische Universität München, Morten Bennedsen, INSEAD, and Haoyong Zhou, Copenhagen Business School
Chapter 8
"Influence of Internal Factors on the Use of Equity- and Mezzanine-Based Financing in Family Firms "
Ann-Kristin Achleitner, Technische Universität München, Eva Lutz, Technische Universität München, and Stephanie Schraml, Technische Universität München
Part IV. Funding: Planning, Credit Markets and Gaps
Chapter 9
"Planning for Entrepreneurial Finance and Capital: A Critical Review of the Importance of Teaching Business Planning "
Benson Honig, McMaster University
Chapter 10
"Funding Gaps "
Robert Cressy, University of Birmingham
Chapter 11
"Availability of Credit to Small Firms Young and Old: Evidence from the Surveys of Small Business Finances "
Rebel Cole, DePaul University
Chapter 12
"Asymmetric Information, Credit Market Condition and Entrepreneurial Finance "
Liang Han, University of Hull Business School, and Song Zhang, University of Hull Business School
Part V. Alternative Types of Entrepreneurial Finance
Chapter 13
"Crowdfunding of Entrepreneurial Ventures "
Armin Schwienbacher, SKEMA Business School, Université de Lille, and Benjamin Larralde, University of Luxembourg, Luxembourg Business Academy
Chapter 14
"Angel Investors and their Investments "
Ramon P. DeGennaro, University of Tennessee, Knoxville
Chapter 15
"Firm Growth, Schumpeterian Entrepreneurship and Venture Capital "
Michael Peneder, University of Vienna University of Economics and Business, Austrian Institute of Economic Research
Chapter 16
"Why Do Firms Go Public? "
James Brau, Brigham Young University
Chapter 17
"Valuation of IPOs "
Rajesh Aggarwal, University of Minnesota, Sanjai Bhagat, University of Colorado, Boulder, Srinivasan Rangan, University of Colorado, Boulder
Chapter 18
"What is Trade Credit and Why Does it Exist? "
Vicente Cuñat, London School of Economics and Universität Pompeu Fabra, and Emilia Garcia, Universität Pompeu Fabra
Chapter 19
"Factoring and Invoice Financing "
Khaled Soufani, John Molson School of Business, Concordia University
Chapter 20
"Project Finance "
Stefano Gatti, Bocconi University, Stefano Caselli, Bocconi University, and Alessandro Steffanoni, Interbanca S.P.A. - ABN AMRO Group
Chapter 21
"Hedge Fund Asset-Based Lending "
Houman Shadab, New York Law School
Part VI. Public Policy
Chapter 22
"Business Taxation, Corporate Finance and Economic Performance "
Christian Keuschnigg, University of St. Gallen, and Evelyn Ribi, University of St. Gallen
Chapter 23
"Financing Capital among Minority-Owned Businesses "
Robert Farlie, University of California Santa Cruz, and Alicia Robb, University of California Santa Cruz
Chapter 24
"Financing Women Owned Businesses: A Review of Recent Literature "
Susan Coleman, University of Hartford, and Alicia Robb, University of California Santa Cruz
Part VII. International Comparisons and Microfinance
Chapter 25
"International Differences in Entrepreneurial Finance "
Larry Chavis, University of North Carolina Kenan-Flagler Business School, Leorra Klapper, World Bank, and Inessa Love, World Bank
Chapter 26
"Entrepreneurial Finance in Weak Institutional Environments "
David Lingelbach, University of Baltimore and Johns Hopkins University
Chapter 27
"Microfinance for Entrepreneurs "
Miriam Bruhn, World Bank, Fenella Carpena, World Bank, and Bilal Zia, World Bank
Chapter 28
"The Past and Future of Innovations in Microfinance "
Roy Mersland, University of Agder, Kristiansand, Norway, and R. Øystein Strøm, Oslo University Colle, Oslo, Norway

The Oxford Handbook of Entrepreneurial Finance

Edited by Douglas Cumming

Oxford Handbooks

Author Information

Edited by Douglas Cumming, Professor and Ontario Research Chair, Schulich School of Business, York University

Douglas Cumming is Professor and Ontario Research Chair at the Schulich School of Business, York University.

Contributors:

Douglas Cumming, J.D., Ph.D., CFA, is a Professor at the Schulich School of Business, York University.
Brent Goldfarb is Associate Professor in the Robert H. Smith School of Business, University of Maryland.
April R. Shen is a graduate student in strategy.
David A. Kirsch is Associate Professor of Strategy and Entrepreneurship in the Robert H. Smith School of Business at the University of Maryland.
Dr. Thomas Åstebro is Associate Professor of strategic management at HEC Paris.
Frank M. Fossen is Assistant Professor at Freie Universität Berlin, Germany.
Sheryl Winston Smith is Assistant Professor at the Fox School of Business at Temple University.
David T. Robinson is Professor at Duke University's Fuqua School of Business.
Morten Bennedsen is the André and Rosalie Hoffmann Chair of Family Business Management and Professor in Economics at INSEAD.
Haoyong Zhou is a PhD fellow at Copenhagen Business School.
Markus Ampenberger is a research fellow at the Center for Entrepreneurial and Financial Studies (CEFS) at Technische Universität München.
Ann-Kristin Achleitner holds the KfW Endowed Chair in Entrepreneurial Finance and is Scientific Co-Director at the Center for Entrepreneurial and Financial Studies (CEFS) at Technische Universität München (TUM).
Eva Lutz is Assistant Professor at the KfW Endowed Chair in Entrepreneurial Finance at Technische Universität München (TUM).
Stephanie Schraml holds a doctorate degree from the KfW Endowed Chair in Entrepreneurial Finance at Technische Universität München (TUM).
Benson Honig is the Teresa Cascioli Chair in Entrepreneurial Leadership, McMaster University, Canada.
Robert Cressy is Professor of Finance at the University of Birmingham Business School.
Dr. Rebel Cole is Professor at the Kellstadt College of Business of DePaul University in Chicago and a special advisor to the International Monetary Fund.
Dr. Liang Han is a Senior Lecturer at the Business School, University of Hull.
Song Zhang is currently a PhD student at the Business School, University of Hull.
Armin Schwienbacher is a professor at the Université Lille Nord de France - SKEMA Business School (France).
Benjamin Larralde is the founder of FansNextdoor.com, a platform for artists and creative people to fund their projects through crowdfunding.
Ramon P. DeGennaro is the CBA Professor of Banking and Finance at the University of Tennessee.
Michael R. Peneder is deputy director of the Austrian Institute of Economic Research (WIFO) and managing editor of the Journal of Industry, Competition and Trade.
James C. Brau is a Professor at Brigham Young University and the editor of The Journal of Entrepreneurial Finance.
Rajesh K. Aggarwal is the US Bancorp Professor at the Carlson School of Management at the University of Minnesota.
Sanjai Bhagat is the Provost Professor at the University of Colorado at Boulder.
Srinivasan Rangan is an Associate Professor at the Indian Institute of Management, Bangalore.
Vicente Cuñat is Associate Professor at the London School of Economics.
Dr. Khaled Soufani is an Associate Professor of Finance and is Director of the Desjardins Centre for Innovation in Business Finance at Concordia University in Montreal - Canada.
Stefano Gatti is Director at Bocconi University in Milan, where he is also the past Director of the International Teachers' Programme.
Stefano Caselli, Full Professor of Banking and Finance, Università Bocconi, Milan.
Alessandro Steffanoni is head of project finance team in Meliorbanca S.p.A. Meliorbanca is the investment bank of italian commercial bank Banco Popolare Emilia Romagna.
Houman B. Shadab is an Associate Professor at New York Law School and Editor-in-Chief of the Journal of Taxation and Regulation of Financial Institutions.
Christian Keuschnigg is Professor at the University of St. Gallen (FGN-HSG) and a research fellow of the networks CEPR, CESifo and Oxford University Centre for Business Taxation.
Robert Fairlie is Professor of Economics at the University of California, Santa Cruz.
Dr. Susan Coleman is a Professor of Finance at the University of Hartford.
Larry Chavis is an Assistant Professor at the University of North Carolina Kenan-Flagler Business School.
Leora Klapper is Senior Economist in the Development Research Group at the World Bank.
Inessa Love is a Senior Economist in the Finance Team of the Development Research Group.
David Lingelbach is Assistant Professor at University of Baltimore and Professorial Lecturer at Johns Hopkins School of Advanced International Studies.
Miriam Bruhn is an Economist at the World Bank Development Research Group.
Fenella Carpena is a consultant at the World Bank Development Research Group.
Bilal Zia is an Economist at the World Bank Development Research Group.
Roy Mersland is associate professor at Kristiansand School of Management at University of Agder in Norway.

The Oxford Handbook of Entrepreneurial Finance

Edited by Douglas Cumming

Oxford Handbooks

Reviews and Awards

"This is a wide-ranging and comprehensive handbook which provides an outstanding introduction to the field. It provides an excellent overview of all the main aspects of financing entrepreneurial businesses and is to be welcomed especially for the broad range of international experience it covers." - Alan Hughes, Margaret Thatcher Professor of Enterprise Studies and Director of the Centre for Business Research, Judge Business School, University of Cambridge