Università Roma Tre

SMEs’ investment decisions: peculiarities and differences between small and large firms
1) The role of entrepreneur: unique abilities, risk aversion and agency costs
2) Violation of the separation theorem: breaking NPV and value additivity rules in valuing investments; underinvestment problems.
The risk of SMEs
3) Asymmetric information and asset substitution problems
4) Small size as systematic risk and multifactor models in cost of capital estimation
5) The effect of economic cycle on risk and return of small and large firms
SMEs’ financing decisions: peculiarities and differences between small and large firms
6) Private equity and private debt: how SMEs raise outside financing; the financial cycle of SMEs
7) Venture capital: theory and empirical evidence
8) Failures in accessing outside financing channels
9) Capital structure determinants: differences between small and large firms
10) How small firms differ from large firms in tapping into different financing channels around the world

a) Fama, E.F., Jensen, M.C., 1985. Organizational forms and investment decisions. Journal of Financial Economics 14 (1), pp. 101-119 (§1, §2, §3, §5, §5.1, §5.4)

b) Pettit, R.R., Singer, R.F., 1985. Small business finance: A research agenda. Financial Management 14 (3), pp. 47-60

c) Berger, A.N., Udell, F.G., 1998. The economics of small business finance: The roles of private equity and debt markets in the financial growth cycle, Journal of Banking and Finance 22 (6-8), pp. 613-673 [§1, §2, §2.2, §2.3, §2.4, §2.5, §5 e sottoparagrafi, §6]

d) Beck, T., Demirguc-Kunt, A., Maksimovic, V., 2008. Financing patterns around the world: Are small firms different?. Journal of Financial Economics 89 (3), pp. 467-487

e) Del Colle, D.M., Finaldi-Russo, P., Generale, A., 2006. The causes and consequences of venture capital financing. An analysis based on a sample of Italian firms, Temi di discussione del servizio studi, Banca d’Italia, Nr. 584

f) Berk, J., De Marzo, P., 2018. Finanza Aziendale 1, 4th edition, Pearson, §13.1, §13.2, §13.3, §13.5, §13.6, §13.7 and appendix)

g) Fidanza, B., 2003. Le determinanti del rendimento delle attività rischiose, Morlacchi Editore (§1.3, §1.3.1, §2.1, §2.2, §2.3, §2.3.1, §2.3.2, §2.3.4, §2.3.9, §2.4.1, §2.4.2, §2.4.3)

h) Venanzi, D., 2010. Il puzzle della struttura finanziaria, Pearson-Prentice Hall (§3.9, §3.10)

i) Switzer, L.N., 2010. The behaviour of small cap vs. large cap stocks in recessions and recoveries: Empirical evidence for the United States and Canada, North American Journal of Economics and Finance 21, pp. 332-346

j) Cole, R.A., 2013. What do we know about the capital structure of privately held US firms? Evidence from the Surveys of Small Business Finance, Financial Management 42 (4), pp. 777-813

SMEs’ investment decisions: peculiarities and differences between small and large firms
1) The role of entrepreneur: unique abilities, risk aversion and agency costs
2) Violation of the separation theorem: breaking NPV and value additivity rules in valuing investments; underinvestment problems.
The risk of SMEs
3) Asymmetric information and asset substitution problems
4) Small size as systematic risk and multifactor models in cost of capital estimation
5) The effect of economic cycle on risk and return of small and large firms
SMEs’ financing decisions: peculiarities and differences between small and large firms
6) Private equity and private debt: how SMEs raise outside financing; the financial cycle of SMEs
7) Venture capital: theory and empirical evidence
8) Failures in accessing outside financing channels
9) Capital structure determinants: differences between small and large firms
10) How small firms differ from large firms in tapping into different financing channels around the world

a) Fama, E.F., Jensen, M.C., 1985. Organizational forms and investment decisions. Journal of Financial Economics 14 (1), pp. 101-119 (§1, §2, §3, §5, §5.1, §5.4)

b) Pettit, R.R., Singer, R.F., 1985. Small business finance: A research agenda. Financial Management 14 (3), pp. 47-60

c) Berger, A.N., Udell, F.G., 1998. The economics of small business finance: The roles of private equity and debt markets in the financial growth cycle, Journal of Banking and Finance 22 (6-8), pp. 613-673 [§1, §2, §2.2, §2.3, §2.4, §2.5, §5 e sottoparagrafi, §6]

d) Beck, T., Demirguc-Kunt, A., Maksimovic, V., 2008. Financing patterns around the world: Are small firms different?. Journal of Financial Economics 89 (3), pp. 467-487

e) Del Colle, D.M., Finaldi-Russo, P., Generale, A., 2006. The causes and consequences of venture capital financing. An analysis based on a sample of Italian firms, Temi di discussione del servizio studi, Banca d’Italia, Nr. 584

f) Berk, J., De Marzo, P., 2018. Finanza Aziendale 1, 4th edition, Pearson, §13.1, §13.2, §13.3, §13.5, §13.6, §13.7 and appendix)

g) Fidanza, B., 2003. Le determinanti del rendimento delle attività rischiose, Morlacchi Editore (§1.3, §1.3.1, §2.1, §2.2, §2.3, §2.3.1, §2.3.2, §2.3.4, §2.3.9, §2.4.1, §2.4.2, §2.4.3)

h) Venanzi, D., 2010. Il puzzle della struttura finanziaria, Pearson-Prentice Hall (§3.9, §3.10)

i) Switzer, L.N., 2010. The behaviour of small cap vs. large cap stocks in recessions and recoveries: Empirical evidence for the United States and Canada, North American Journal of Economics and Finance 21, pp. 332-346

j) Cole, R.A., 2013. What do we know about the capital structure of privately held US firms? Evidence from the Surveys of Small Business Finance, Financial Management 42 (4), pp. 777-813