Barney School of Business Associate Professor of Finance Carmen Cotei recently had her paper accepted for conference presentation.
"Factors Explaining the Leasing Decisions of Newly Established Firms" was accepted for presentation at the 2015 Midwest Finance Conference. The paper is co-authored with Joseph Farhat.
Abstract: We analyze the determinants of leasing decisions of startup businesses using a unique dataset provided by the Kauffman Foundation. Our results show that larger, more leveraged startups lease more. We document that R&D businesses have a higher propensity to lease even though their assets are unique and not easily repossessed. Industry structure and owners’ characteristics play a significant role in the leasing decisions as startups in construction, retail and services lease more, and older, more educated and less experienced owners lease less.