2026-10-13T02:30:20Zhttps://riubu.ubu.es/oai/request

oai:riubu.ubu.es:10259/94872024-07-26T07:13:52Zcom_10259_3576com_10259.4_2574com_10259.4_106com_10259_2604col_10259_3577

00925njm 22002777a 4500 dc Graña Álvarez, Roberto author Gómez Conde, Jacobo author Lopez-Valeiras, Ernesto author González-Loureiro, Miguel author 2024-06 Entrepreneurs manage the capital structure of their start-ups to align the assumption of financial risk with their risk appetite. We focus on the ways in which management control systems (MCS), categorized as financial and non-financial MCS, serve as determinants of financial leverage in start-ups. Of particular interest is the influence of entrepreneurs' financial literacy on this relationship. We test these associations on a sample of business-incubated start-ups by combining survey and archival data. Our results show that financial MCS are negatively associated with financial leverage, unlike non-financial MCS, which are positively related. Entrepreneurs’ financial literacy mitigates the impact of these associations. Overall, our aim is to shed light on how start-ups navigate the trade-off between taking risks and controlling their operations. In addition, we add to the growing literature on the adjustment of financial leverage and the role of MCS and financial literacy in managing such leverage. 0890-8389 http://hdl.handle.net/10259/9487 10.1016/j.bar.2024.101427 Business financial literacy Business-incubated start-ups Financial leverage Management control systems Management control systems, business financial literacy and financial leverage in business-incubated start-ups