Prior research and anecdotal evidence suggests that women-owned small businesses use less debt than men. This study

uses data from a nationwide sample of small businesses to determine differences in leverage between men and

women-owned firms. Findings reveal that the primary determinants of leverage are firm size, firm age, and profitability.

There were no significant differences in the usage of debt between men and women, and gender was not a significant

Introduction

Small businesses in the United States are widely recognized as a principal source of economic growth, new jobs, and

new products and services. Access to capital is a frequently cited problem, however, and sources of capital are more

limited for small firms that for large ones. Traditional capital structure theory as developed by Modigliani & Miller

(1958) holds that firms will select the mix of debt and equity that maximizes the value of th

Hagan, Carol Rivchun, & Donald Sexton (Eds.), Women Owned Businesses. New York: Praeger.

Riding, Allan, Haines, George H. & Thomas, Roland (1994). The Canadian Small Business-Bank Interface: A

manufacturing, transportation, and construction, may be more likely to use external capital. Bradley et al. (1984) found

Some topics in this essay:
Van Auken, Prob*t INTERCEPT, Olsen Currie, Corporations S-corporations, Coleman Carsky, Modigliani Miller, Modigiliani Miller, Sole Prop**, Titman Wessels, Riding Swift, et al, women-owned businesses, journal business, van auken, scherr et al, et al 1993, capital structure, scherr et, al 1993, prior research, debt equity, men-owned businesses, titman wessels 1988, journal business management, women owned businesses,