nep-cfn New Economics Papers
on Corporate Finance
Issue of 2026–09–21
five papers chosen by
Zelia Serrasqueiro, Universidade da Beira Interior


  1. Bankruptcy law and firm size By Canipek, Aras; Kind, Axel; Litov, Lubomir; Trešl, Jiří
  2. Bankruptcy law penalties and board independence By Canipek, Aras
  3. Human Capital in Venture Capital: Evidence From 100, 000 Venture Capitalists By Blake Jackson; Ilya A. Strebulaev
  4. SME financing in Ireland revisited: Exploring the long shadow of the financial crisis By Coates, Dermot; McIndoe-Calder, Tara; O'Toole, Conor; O'Shea, Dónal; Tran, Chi
  5. Analysis of Micro, Small and Medium Enterprises characteristics and performance across Southern Africa: a cross-country comparative study By Duncan Chandabemba Ngwenya

  1. By: Canipek, Aras; Kind, Axel; Litov, Lubomir; Trešl, Jiří
    Abstract: Weaker creditor rights can increase credit costs and thus prompt firms to reduce debt and investment. Yet, they can reduce distress costs and thus allow firms to increase leverage and eliminate risk-reducing but unprofitable investments. We hypothesize that firm size influences the effect of creditor rights on credit costs and distress costs and thus which effect dominates. Weaker creditor rights should have a negative effect for small firms but a positive effect for large firms. Using a German bankruptcy reform, we find support for our hypothesis. Our findings reconcile mixed evidence and have important implications for optimal bankruptcy design.
    Keywords: creditor rights, bankruptcy law, debt, investments, firm size
    JEL: G31 G32 G33 G34 G38 K22
    Date: 2026
    URL: https://d.repec.org/n?u=RePEc:zbw:safewp:343060
  2. By: Canipek, Aras
    Abstract: A large theoretical literature suggests that bankruptcy law penalties can reduce agency problems, yet evidence remains scarce. To provide evidence, I examine whether firms implement independent directors as a substitute when penalties are eliminated. For identification, I exploit that penalties are relevant only for risky firms. Across countries, board independence is negatively related to penalties, but only among risky firms. Comparing board independence of risky and safe firms around bankruptcy reforms in Germany, Italy, and the US confirms the results. Economically, risky firms increase the number of independent directors by 21% relative to safe firms following the elimination of penalties.
    Keywords: bankruptcy law, board independence, debt, corporate governance
    JEL: G32 G33 G34 G38 K22
    Date: 2026
    URL: https://d.repec.org/n?u=RePEc:zbw:safewp:343059
  3. By: Blake Jackson; Ilya A. Strebulaev
    Abstract: We study human capital in venture capital (VC) using a new dataset covering over 100, 000 professionals affiliated with U.S. VC firms. Investment success is extremely concentrated: fewer than 40% of VCs with any investments are ever credited with a successful investment, and 90% of investment profits are generated by 5% of VCs. Differences in education, prior work experience, and demographics predict career progression and investment outcomes, consistent with persistent investor-specific skills. Quasi-experimental variation from marginal inclusions on the Forbes Midas List shows that achieving superstar status increases access to highly-valued startups, complementing other human capital and contributing to concentration.
    JEL: G2 G23 G24
    Date: 2026–07
    URL: https://d.repec.org/n?u=RePEc:nbr:nberwo:35501
  4. By: Coates, Dermot; McIndoe-Calder, Tara; O'Toole, Conor; O'Shea, Dónal; Tran, Chi
    Date: 2026
    URL: https://d.repec.org/n?u=RePEc:esr:wpaper:wp833
  5. By: Duncan Chandabemba Ngwenya (Faculty of Economics)
    Abstract: This study examines Micro, Small, and Medium Enterprise (MSME) performance across Zimbabwe, South Africa, and Botswana using survey data from 1, 161 businesses. The analysis focuses on owner income growth, employee salary structures, employment patterns, and access to financial assistance. The findings reveal substantial cross-country heterogeneity that challenges conventional assumptions about MSME financing. Zimbabwean MSME owners achieve the highest income growth (47.0 percent) despite having the smallest loan capacity (50, 000 USD maximum), while Botswanan owners exhibit modest growth (8.0 percent) despite the largest loan capacity (1.11 million USD maximum). Employee salary growth is remarkably consistent across countries (29.5-32.5 percent), suggesting that government financial support programs benefit workers regardless of owner outcomes. Agriculture demonstrates the highest sectoral owner income growth (52.3 percent), and no statistically significant gender differences are found.
    Keywords: MSMEs, Owner income, Employee salaries, Business types, Cross-country comparison, Southern Africa
    JEL: J31 L25 L26 O16
    Date: 2026–05–26
    URL: https://d.repec.org/n?u=RePEc:boh:wpaper:05_2026

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