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Research Accomplishments by Barney School's Cotei and Coleman


Posted 10/28/2014
Category: Accolades

Barney School of Business Dean Marty Roth congratulates Associate Professor of Finance Carmen Cotei and Professor of Finance Susan Coleman on two research accomplishments.

First, an article in the October 2014 issue of Inc. magazine features their research. Click the link at the end of this article (under "Documents") to see the Inc. magazine article.

Cotei's and Coleman's research was originally published last year in the Journal of Developmental Entrepreneurship. Their article, "A resource-based view of firm survival: New perspectives on the role of industry and exit route," written with Joseph Farhat, caught the attention of Inc.'s editor. The research results were synthesized into the article linked below for Inc.'s readership of more than 700,000. 

Second, their article "The debt-equity financing decisions of U.S. startup firms", co-authored with Joseph Farhat, was accepted for publication in the Journal of Economics and Finance, the official journal of the Academy of Economics and Finance. 

Abstract:  We examine the debt-equity decisions of startup firms using the Kauffman Firm Survey, the largest database of U.S. startups launched in 2004. To control for sample selection bias and the correlation among financing decisions, we employ a Bivariate Probit-Tobit model. Our results show that several firm characteristics such as growth prospects, firm size, tangible assets, and selling products, as well as owner characteristics such as net worth, experience, education and ethnicity explain the debt-equity decisions in the startup year. In addition, for firms that use debt, we document traits that explain the use of a particular type of business versus personal debt. Larger firms use more business debt, whereas home-based and growth firms use more personal sources of debt. Immigrants, owners who lack work experience and those who invest more time in the business tend to rely more on personal sources of debt.

Documents

Inc. Magazine Article
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