Abstract
This paper examines the determinants of borrowing decisions of social enterprises. Following the streams of research dealing with for-profit firms and non-profit organisations, we apply a panel data analysis of 2228 Belgian social purpose companies over the period of 2004–2013. We find that, in their capital structures, Belgian social purpose companies show a high dependence on financial determinants such as profitability, nature of assets, growth opportunities, size, the probability of agency problem and the previous year's leverage. They also demonstrate a high susceptibility to activity domain, legal form, region and evolution over time. Our results are in line with the mainstream literature on both for-profit organisations and non-profit organisations. We conclude that the capital structure of social enterprises mixes features of both research streams.
Original language | English |
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Pages (from-to) | 234-254 |
Journal | Journal of Sustainable Finance and Investment |
Volume | 5 |
Issue number | 4 |
DOIs | |
Publication status | Published - 20 Oct 2015 |
Externally published | Yes |
Keywords
- social entreprises
- capital structure