Antonio Minguez Vera - Academia.edu (original) (raw)

Papers by Antonio Minguez Vera

Research paper thumbnail of Searching for a Perfect Composition for a Board of Directors

Journal of Corporate Responsibility and Leadership

Background: When one hears that company X achieved success, adopted a strategy, or struggles with... more Background: When one hears that company X achieved success, adopted a strategy, or struggles with difficulties, there is always a company board behind this news. Typically, a company board is a reflection of decisions taken by the owner; in practice, there is no rule as to how to appoint a company board. However, if we consider the long-term interest of the company, we may suggest a few ideas that will allow the company to better adapt to the market; they may also help to build the competitive advantage and have a positive impact on the company's market position. This article presents a belief that the company board composition should evolve from merely reflecting the goals of the owner and the professionalism of the members, into a board, whose structure reflects employees and the market in which the company operates. This approach stems from the need to adapt to the market conditions, which is easier when the process of change starts with the company board. To illustrate these ideas, a fictitious example of a limited liability company will be used, for which we developed various board models based on the market situation

Research paper thumbnail of Women on managing boards – are companies more responsible when women share the power ?

Research paper thumbnail of Members’ perceptions of governance in agricultural cooperatives: Evidence from Spain

Outlook on Agriculture

This article examines some aspects related to perceptions of agricultural cooperative members. Mo... more This article examines some aspects related to perceptions of agricultural cooperative members. Most arguments employed are based on agency and property rights theories. The sample consists of 196 satisfaction surveys completed by agricultural cooperative members and accounting information from Spanish cooperatives. The results show that when members do not perceive any serious agency problems, the performance of the firm is higher. We also find that members are not discouraged from investing by awareness of the free-rider problem, and the less risk averse members are, the higher is the long-term debt ratio. Finally, members’ perceptions of the time horizon problem have no impact on the time frame for investment.

Research paper thumbnail of Searching for a Perfect Composition for a Board of Directors

Journal of Corporate Responsibility and Leadership, 2017

J. Hernik, A. Minguez Vera: " Searching for a perfect composition for a board of directors &... more J. Hernik, A. Minguez Vera: " Searching for a perfect composition for a board of directors " >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> Background: When one hears that company X achieved success, adopted a strategy, or struggles with difficulties, there is always a company board behind this news. Typically, a company board is a reflection of decisions taken by the owner; in practice, there is no rule as to how to appoint a company board. However, if we consider the long-term interest of the company, we may suggest a few ideas that will allow the company to better adapt to the market; they may also help to build the competitive advantage and have a positive impact on the company's market position. This article presents a belief that the company board composition should evolve from merely reflecting the goals of the owner and the professionalism of the members, into a bo...

Research paper thumbnail of Política de dividendos, riesgo, endeudamiento y estructura de propiedad. Un análisis para el mercado español

El Trimestre Económico

Este artículo analiza la relación entre el pago de dividendos, el riesgo empresarial, el endeudam... more Este artículo analiza la relación entre el pago de dividendos, el riesgo empresarial, el endeudamiento y la propiedad de los consejeros. Los resultados muestran, en primer lugar, que el pago de dividendos reduce el riesgo y el endeudamiento y aumenta la propiedad de los consejeros. En segundo lugar, se obtiene que dicho riesgo repercute de manera negativa en el endeudamiento y en el pago de dividendos y positiva en la propiedad de los consejeros. En tercer lugar, se halla que las empresas más endeudadas reparten una cuantía inferior de dividendos, tienen un riesgo menor y presentan mayor propiedad por parte de los consejeros. Por último, se observa que la citada propiedad incrementa el riesgo, el endeudamiento y el pago de dividendos de la sociedad.

Research paper thumbnail of Does gender diversity on corporate boards reduce information asymmetry in equity markets?

BRQ Business Research Quarterly, 2017

Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch ge... more Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in EconStor may be saved and copied for your personal and scholarly purposes. You are not to copy documents for public or commercial purposes, to exhibit the documents publicly, to make them publicly available on the internet, or to distribute or otherwise use the documents in public.

Research paper thumbnail of Executive Directors' Compensation and Monitoring: The Influence of Gender Diversity on Spanish Boards

Journal of Business Economics and Management, 2016

This study presents evidence of the influence of gender diversity on the pay system and the monit... more This study presents evidence of the influence of gender diversity on the pay system and the monitoring of executives in Spain. In this country/context, characterized by a few male dominant shareholders acting simultaneously as executives, there is an ongoing discussion regarding the enactment of laws to promote gender equality on the boards of directors of large listed companies. This paper presents several contributions. On the one hand, the scarce previous evidence on this topic is focused on US firms. On the other hand, this study includes the role of ownership structure as a factor that indirectly moderates the relationships between gender diversity on board and monitoring effectiveness in terms of executive directors’ compensation. Furthermore, this paper makes an important effort to control endogeneity. The sample examined includes 120 companies listed on the Spanish stock market during the period 2004–2011. The results show a positive and highly significant effect of the pres...

Research paper thumbnail of Concentraci�n Accionarial y Liquidez De Mercado: Un Analisis Con Ecuaciones Simult�neas

Los documentos de trabajo del IVIE ofrecen un avance de los resultados de las investigaciones eco... more Los documentos de trabajo del IVIE ofrecen un avance de los resultados de las investigaciones económicas en curso, con objeto de generar un proceso de discusión previo a su remisión a las revistas científicas.

Research paper thumbnail of The influence of gender on financial decisions: evidence from small start-up firms in spain

E+M Ekonomie a Management, 2015

Research paper thumbnail of Política De Dividendos, Riesgo, Endeudamiento Y Estructura De Propiedad: Un Análisis Para El Mercado Español

Research paper thumbnail of Are there spill-over effects into the financial behaviour of SME´s?

Research paper thumbnail of ¿Afectan las características del consejo de administración a su labor supervisora? Nueva evidencia para el mercado español”

Revista Europea de Direccion y Economia de la Empresa

Este trabajo analiza el efecto de diversas caracteristicas del consejo de administracion en su la... more Este trabajo analiza el efecto de diversas caracteristicas del consejo de administracion en su labor de control. Los resultados muestran una repercusion no lineal de la propiedad de los consejeros en el valor de la empresa, mientras que el tamano del consejo presenta una influencia negativa en dicho valor. Ademas obtenemos una relacion no significativa entre la permanencia de los consejeros en su cargo y la Q de Tobin. Finalmente, hallamos evidencia de una repercusion negativa de la propiedad de los consejeros en el porcentaje de miembros externos del consejo. No existe evidencia de la relacion inversa.

Research paper thumbnail of The influence of gender on financial decisions: evidence from small start-up firms in Spain

E a M: Ekonomie a Management

Research paper thumbnail of Executive directors’ compensation and monitoring: the influence of gender diversity on Spanish board of directors

Journal of Business Economics and Management

This study presents evidence of the influence of gender diversity on the pay system and the monit... more This study presents evidence of the influence of gender diversity on the pay system and the monitoring of executives in Spain. In this country/context, characterized by a few male dominant shareholders acting simultaneously as executives, there is an ongoing discussion regarding the enactment of laws to promote gender equality on the boards of directors of large listed companies. This paper presents several contributions. On the one hand, the scarce previous evidence on this topic is focused on US firms. On the other hand, this study includes the role of ownership structure as a factor that indirectly moderates the relationships between gender diversity on board and monitoring effectiveness in terms of executive directors’ compensation. Furthermore, this paper makes an important effort to control endogeneity. The sample examined includes 120 companies listed on the Spanish stock market during the period 2004-2011. The results show a positive and highly significant effect of the pres...

Research paper thumbnail of Agency and property rights theories in agricultural cooperatives: evidence from Spain

Spanish Journal of Agricultural Research, 2010

Research paper thumbnail of Firm Performance and Women on the Board: Evidence from Spanish Small and Medium-Sized Enterprises

Feminist Economics, 2014

ABSTRACT This study examines gender diversity on boards of directors in a sample of nonfinancial ... more ABSTRACT This study examines gender diversity on boards of directors in a sample of nonfinancial Spanish small and medium-sized enterprises (SMEs) for 2003–8, finding that the probability of women on the board increases with firm performance, defined as return on assets, and family ownership, but diminishes with corporate ownership and firm risk. It also finds, when examining the full sample, a positive effect of the presence of women board members on firm performance. The study also obtains a similar positive effect in most subsamples, including in firms with corporate ownership, where family connections play less role in the election of board members, and in firms in the secondary and tertiary sectors, which are characterized by having greater proximity to final consumers than those in the primary sector.

Research paper thumbnail of Farmers’ satisfaction with fresh fruit and vegetable marketing Spanish cooperatives: an explanation from agency theory

Agricultural cooperatives have specific characteristics. Coop members may have different roles (o... more Agricultural cooperatives have specific characteristics. Coop members may have different roles (owners, buyers, sellers and controllers) and, consequently, these players may have different objectives. The various stakeholders may also have different objectives from the management of the cooperative. This makes agency theory a good framework for the analysis of farmers' satisfaction with their cooperative. Based on a sample of 277 members of fruit and vegetable marketing cooperatives in Spain, the results show that members' satisfaction with the cooperative exerts a positive influence on members' desire to continue as members of that cooperative. The results also confirm the positive influence of trust, information and control on satisfaction.

Research paper thumbnail of Agency and property rights theories in agricultural cooperatives: evidence from Spain

Research paper thumbnail of Satisfacción de los socios con las cooperativas agrarias. Una explicación a partir de la Teoría de los Derechos de Propiedad

Informacion Tecnica Economica Agraria, 2013

utilidad para comprender los factores que influyen en la satisfacción de los socios con la cooper... more utilidad para comprender los factores que influyen en la satisfacción de los socios con la cooperativa y, en definitiva, en la supervivencia y éxito de esta singular organización. Esta teoría revela importantes diferencias con las empresas capitalistas en cuanto a la forma en que los socios ejercen sus derechos de propiedad. Así, en las cooperativas sus socios ejercitan estos derechos en función a la actividad cooperativizada que realizan y, además, estas organizaciones presentan limitaciones en la transferencia de estos derechos en lo relativo a quién se pueden transferir y al valor de la transmisión. Estas peculiaridades de las cooperativas en cuanto al tratamiento de los derechos de propiedad conllevan una serie de ineficiencias que se concretan en los problemas del polizón, horizonte temporal y riesgo. La consecuencia más importante de estos problemas es que desincentivan la realización de inversiones por los socios y comprometen el crecimiento y la supervivencia de la cooperativa. Los resultados del estudio empírico, realizado con la información obtenida de una encuesta a 277 socios de cooperativas agrarias, confirman que en la medida en que se reducen los problemas asociados con el polizón, el horizonte temporal y el riesgo, aumenta la satisfacción de los socios con la cooperativa. De aquí la importancia de que los responsables de administrar las cooperativas agrarias introduzcan mecanismos adecuados para atenuar los problemas asociados a la singular forma de ejercer los socios sus derechos de propiedad.

Research paper thumbnail of Ownership structure and debt as corporate governance mechanisms: an empirical analysis for Spanish smes

Journal of Business Economics and Management, 2014

The purpose of this paper is to analyze the relationship between ownership structure and indebted... more The purpose of this paper is to analyze the relationship between ownership structure and indebtedness for a sample of 2,544 Spanish small and medium enterprises. A System Generalized Method of Moments methodology is applied to control for the heterogeneity and endogeneity problems. The finding shows a negative effect of several measures of ownership on debt ratio. Therefore, the presence of an individual as main shareholder has a positive effect on debt, while the presence of a corporation as main shareholder exerts a negative influence. As research implications, this paper includes the agency problem based on principal-principal conflicts to explain the capital structure of small and medium enterprises, going beyond traditional principal-agent conflicts. The main practical implications of the paper is that owners who seek equity financing can use the results of this study for understanding better why investors are reluctant to invest in their small and medium enterprises. Policymak...

Research paper thumbnail of Searching for a Perfect Composition for a Board of Directors

Journal of Corporate Responsibility and Leadership

Background: When one hears that company X achieved success, adopted a strategy, or struggles with... more Background: When one hears that company X achieved success, adopted a strategy, or struggles with difficulties, there is always a company board behind this news. Typically, a company board is a reflection of decisions taken by the owner; in practice, there is no rule as to how to appoint a company board. However, if we consider the long-term interest of the company, we may suggest a few ideas that will allow the company to better adapt to the market; they may also help to build the competitive advantage and have a positive impact on the company's market position. This article presents a belief that the company board composition should evolve from merely reflecting the goals of the owner and the professionalism of the members, into a board, whose structure reflects employees and the market in which the company operates. This approach stems from the need to adapt to the market conditions, which is easier when the process of change starts with the company board. To illustrate these ideas, a fictitious example of a limited liability company will be used, for which we developed various board models based on the market situation

Research paper thumbnail of Women on managing boards – are companies more responsible when women share the power ?

Research paper thumbnail of Members’ perceptions of governance in agricultural cooperatives: Evidence from Spain

Outlook on Agriculture

This article examines some aspects related to perceptions of agricultural cooperative members. Mo... more This article examines some aspects related to perceptions of agricultural cooperative members. Most arguments employed are based on agency and property rights theories. The sample consists of 196 satisfaction surveys completed by agricultural cooperative members and accounting information from Spanish cooperatives. The results show that when members do not perceive any serious agency problems, the performance of the firm is higher. We also find that members are not discouraged from investing by awareness of the free-rider problem, and the less risk averse members are, the higher is the long-term debt ratio. Finally, members’ perceptions of the time horizon problem have no impact on the time frame for investment.

Research paper thumbnail of Searching for a Perfect Composition for a Board of Directors

Journal of Corporate Responsibility and Leadership, 2017

J. Hernik, A. Minguez Vera: " Searching for a perfect composition for a board of directors &... more J. Hernik, A. Minguez Vera: " Searching for a perfect composition for a board of directors " >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> Background: When one hears that company X achieved success, adopted a strategy, or struggles with difficulties, there is always a company board behind this news. Typically, a company board is a reflection of decisions taken by the owner; in practice, there is no rule as to how to appoint a company board. However, if we consider the long-term interest of the company, we may suggest a few ideas that will allow the company to better adapt to the market; they may also help to build the competitive advantage and have a positive impact on the company's market position. This article presents a belief that the company board composition should evolve from merely reflecting the goals of the owner and the professionalism of the members, into a bo...

Research paper thumbnail of Política de dividendos, riesgo, endeudamiento y estructura de propiedad. Un análisis para el mercado español

El Trimestre Económico

Este artículo analiza la relación entre el pago de dividendos, el riesgo empresarial, el endeudam... more Este artículo analiza la relación entre el pago de dividendos, el riesgo empresarial, el endeudamiento y la propiedad de los consejeros. Los resultados muestran, en primer lugar, que el pago de dividendos reduce el riesgo y el endeudamiento y aumenta la propiedad de los consejeros. En segundo lugar, se obtiene que dicho riesgo repercute de manera negativa en el endeudamiento y en el pago de dividendos y positiva en la propiedad de los consejeros. En tercer lugar, se halla que las empresas más endeudadas reparten una cuantía inferior de dividendos, tienen un riesgo menor y presentan mayor propiedad por parte de los consejeros. Por último, se observa que la citada propiedad incrementa el riesgo, el endeudamiento y el pago de dividendos de la sociedad.

Research paper thumbnail of Does gender diversity on corporate boards reduce information asymmetry in equity markets?

BRQ Business Research Quarterly, 2017

Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch ge... more Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in EconStor may be saved and copied for your personal and scholarly purposes. You are not to copy documents for public or commercial purposes, to exhibit the documents publicly, to make them publicly available on the internet, or to distribute or otherwise use the documents in public.

Research paper thumbnail of Executive Directors' Compensation and Monitoring: The Influence of Gender Diversity on Spanish Boards

Journal of Business Economics and Management, 2016

This study presents evidence of the influence of gender diversity on the pay system and the monit... more This study presents evidence of the influence of gender diversity on the pay system and the monitoring of executives in Spain. In this country/context, characterized by a few male dominant shareholders acting simultaneously as executives, there is an ongoing discussion regarding the enactment of laws to promote gender equality on the boards of directors of large listed companies. This paper presents several contributions. On the one hand, the scarce previous evidence on this topic is focused on US firms. On the other hand, this study includes the role of ownership structure as a factor that indirectly moderates the relationships between gender diversity on board and monitoring effectiveness in terms of executive directors’ compensation. Furthermore, this paper makes an important effort to control endogeneity. The sample examined includes 120 companies listed on the Spanish stock market during the period 2004–2011. The results show a positive and highly significant effect of the pres...

Research paper thumbnail of Concentraci�n Accionarial y Liquidez De Mercado: Un Analisis Con Ecuaciones Simult�neas

Los documentos de trabajo del IVIE ofrecen un avance de los resultados de las investigaciones eco... more Los documentos de trabajo del IVIE ofrecen un avance de los resultados de las investigaciones económicas en curso, con objeto de generar un proceso de discusión previo a su remisión a las revistas científicas.

Research paper thumbnail of The influence of gender on financial decisions: evidence from small start-up firms in spain

E+M Ekonomie a Management, 2015

Research paper thumbnail of Política De Dividendos, Riesgo, Endeudamiento Y Estructura De Propiedad: Un Análisis Para El Mercado Español

Research paper thumbnail of Are there spill-over effects into the financial behaviour of SME´s?

Research paper thumbnail of ¿Afectan las características del consejo de administración a su labor supervisora? Nueva evidencia para el mercado español”

Revista Europea de Direccion y Economia de la Empresa

Este trabajo analiza el efecto de diversas caracteristicas del consejo de administracion en su la... more Este trabajo analiza el efecto de diversas caracteristicas del consejo de administracion en su labor de control. Los resultados muestran una repercusion no lineal de la propiedad de los consejeros en el valor de la empresa, mientras que el tamano del consejo presenta una influencia negativa en dicho valor. Ademas obtenemos una relacion no significativa entre la permanencia de los consejeros en su cargo y la Q de Tobin. Finalmente, hallamos evidencia de una repercusion negativa de la propiedad de los consejeros en el porcentaje de miembros externos del consejo. No existe evidencia de la relacion inversa.

Research paper thumbnail of The influence of gender on financial decisions: evidence from small start-up firms in Spain

E a M: Ekonomie a Management

Research paper thumbnail of Executive directors’ compensation and monitoring: the influence of gender diversity on Spanish board of directors

Journal of Business Economics and Management

This study presents evidence of the influence of gender diversity on the pay system and the monit... more This study presents evidence of the influence of gender diversity on the pay system and the monitoring of executives in Spain. In this country/context, characterized by a few male dominant shareholders acting simultaneously as executives, there is an ongoing discussion regarding the enactment of laws to promote gender equality on the boards of directors of large listed companies. This paper presents several contributions. On the one hand, the scarce previous evidence on this topic is focused on US firms. On the other hand, this study includes the role of ownership structure as a factor that indirectly moderates the relationships between gender diversity on board and monitoring effectiveness in terms of executive directors’ compensation. Furthermore, this paper makes an important effort to control endogeneity. The sample examined includes 120 companies listed on the Spanish stock market during the period 2004-2011. The results show a positive and highly significant effect of the pres...

Research paper thumbnail of Agency and property rights theories in agricultural cooperatives: evidence from Spain

Spanish Journal of Agricultural Research, 2010

Research paper thumbnail of Firm Performance and Women on the Board: Evidence from Spanish Small and Medium-Sized Enterprises

Feminist Economics, 2014

ABSTRACT This study examines gender diversity on boards of directors in a sample of nonfinancial ... more ABSTRACT This study examines gender diversity on boards of directors in a sample of nonfinancial Spanish small and medium-sized enterprises (SMEs) for 2003–8, finding that the probability of women on the board increases with firm performance, defined as return on assets, and family ownership, but diminishes with corporate ownership and firm risk. It also finds, when examining the full sample, a positive effect of the presence of women board members on firm performance. The study also obtains a similar positive effect in most subsamples, including in firms with corporate ownership, where family connections play less role in the election of board members, and in firms in the secondary and tertiary sectors, which are characterized by having greater proximity to final consumers than those in the primary sector.

Research paper thumbnail of Farmers’ satisfaction with fresh fruit and vegetable marketing Spanish cooperatives: an explanation from agency theory

Agricultural cooperatives have specific characteristics. Coop members may have different roles (o... more Agricultural cooperatives have specific characteristics. Coop members may have different roles (owners, buyers, sellers and controllers) and, consequently, these players may have different objectives. The various stakeholders may also have different objectives from the management of the cooperative. This makes agency theory a good framework for the analysis of farmers' satisfaction with their cooperative. Based on a sample of 277 members of fruit and vegetable marketing cooperatives in Spain, the results show that members' satisfaction with the cooperative exerts a positive influence on members' desire to continue as members of that cooperative. The results also confirm the positive influence of trust, information and control on satisfaction.

Research paper thumbnail of Agency and property rights theories in agricultural cooperatives: evidence from Spain

Research paper thumbnail of Satisfacción de los socios con las cooperativas agrarias. Una explicación a partir de la Teoría de los Derechos de Propiedad

Informacion Tecnica Economica Agraria, 2013

utilidad para comprender los factores que influyen en la satisfacción de los socios con la cooper... more utilidad para comprender los factores que influyen en la satisfacción de los socios con la cooperativa y, en definitiva, en la supervivencia y éxito de esta singular organización. Esta teoría revela importantes diferencias con las empresas capitalistas en cuanto a la forma en que los socios ejercen sus derechos de propiedad. Así, en las cooperativas sus socios ejercitan estos derechos en función a la actividad cooperativizada que realizan y, además, estas organizaciones presentan limitaciones en la transferencia de estos derechos en lo relativo a quién se pueden transferir y al valor de la transmisión. Estas peculiaridades de las cooperativas en cuanto al tratamiento de los derechos de propiedad conllevan una serie de ineficiencias que se concretan en los problemas del polizón, horizonte temporal y riesgo. La consecuencia más importante de estos problemas es que desincentivan la realización de inversiones por los socios y comprometen el crecimiento y la supervivencia de la cooperativa. Los resultados del estudio empírico, realizado con la información obtenida de una encuesta a 277 socios de cooperativas agrarias, confirman que en la medida en que se reducen los problemas asociados con el polizón, el horizonte temporal y el riesgo, aumenta la satisfacción de los socios con la cooperativa. De aquí la importancia de que los responsables de administrar las cooperativas agrarias introduzcan mecanismos adecuados para atenuar los problemas asociados a la singular forma de ejercer los socios sus derechos de propiedad.

Research paper thumbnail of Ownership structure and debt as corporate governance mechanisms: an empirical analysis for Spanish smes

Journal of Business Economics and Management, 2014

The purpose of this paper is to analyze the relationship between ownership structure and indebted... more The purpose of this paper is to analyze the relationship between ownership structure and indebtedness for a sample of 2,544 Spanish small and medium enterprises. A System Generalized Method of Moments methodology is applied to control for the heterogeneity and endogeneity problems. The finding shows a negative effect of several measures of ownership on debt ratio. Therefore, the presence of an individual as main shareholder has a positive effect on debt, while the presence of a corporation as main shareholder exerts a negative influence. As research implications, this paper includes the agency problem based on principal-principal conflicts to explain the capital structure of small and medium enterprises, going beyond traditional principal-agent conflicts. The main practical implications of the paper is that owners who seek equity financing can use the results of this study for understanding better why investors are reluctant to invest in their small and medium enterprises. Policymak...