RT info:eu-repo/semantics/article
T1 Management control systems, business financial literacy and financial leverage in business-incubated start-ups
A1 Graña Álvarez, Roberto
A1 Gómez Conde, Jacobo
A1 Lopez-Valeiras, Ernesto
A1 González-Loureiro, Miguel
K1 Business financial literacy
K1 Business-incubated start-ups
K1 Financial leverage
K1 Management control systems
K1 Gestión de empresas
K1 Industrial management
K1 Contabilidad
K1 Accounting
AB 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.
PB Elsevier
SN 0890-8389
YR 2024
FD 2024-06
LK http://hdl.handle.net/10259/9487
UL http://hdl.handle.net/10259/9487
LA eng
NO This publication is part of the project PID2019-104163RA-I00 funded by MICIU/AEI /10.13039/501100011033; and the projects PID2022-139974NB-I00 and PID2022-136983NB-I00 funded by MICIU/AEI/10.13039/501100011033 and by ERDF/EU. We also acknowledge the contribution from FCT –UIDB/04728/2020; Santander Financial Institute; PRICIT (CAM-UAM-Professorship Excellence Program); Fundaci´ on Ram´ on Areces; and the Catedra UAM-Auditores Madrid.
DS Repositorio Institucional de la Universidad de Burgos
RD 06-oct-2024