A Note on the Use of Debt by Venture Capital Backed Firms

Abstract

Presents a study which was conducted to show that not controlling for the underlying firm-specific characteristics in venture capital (VC) and non-VC backed firm cross-sectional studies may result in erroneous conclusions. Reference to Megginson and Weiss methodology and results versus Titman and Wessels methodology; Conclusion of the study. Presents a study which was conducted to show that not controlling for the underlying firm-specific characteristics in venture capital (VC) and non-VC backed firm cross-sectional studies may result in erroneous conclusions. Reference to Megginson and Weiss methodology and results versus Titman and Wessels methodology; Conclusion of the study.