Trust and SME attitudes towards equity financing across Europe

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 in 26 countries, we confirm the presence of these direct and interaction effects. By making explicit the link between trust and attitudes to equity financing we extend the theory on institutional drivers of SME financing.
Document type :
Journal articles
Complete list of metadatas

https://hal-rennes-sb.archives-ouvertes.fr/hal-02194484
Contributor : Steven Gouin <>
Submitted on : Thursday, July 25, 2019 - 3:22:55 PM
Last modification on : Friday, July 26, 2019 - 1:19:45 AM

Identifiers

Collections

Citation

Michael Dowling, Colm O’gorman, Petya Puncheva, Dieter Vanwalleghem. Trust and SME attitudes towards equity financing across Europe. Journal of World Business, Elsevier, 2019, 54 (6), pp.101003. ⟨10.1016/j.jwb.2019.101003⟩. ⟨hal-02194484⟩

Share

Metrics

Record views

28