The role of capital structure in the U.S. enterprises – the case of Californian small businesses
The role of capital structure in the U.S. enterprises – the case of Californian small businesses

Summary/Abstract: Small businesses face acute problems in accessing external funds. There is a large interest in finding the optimal capital structure and understanding the access of firms to finance, particularly in the process of financing small enterprises. Small firms tend to be bank dependent for external funds and the adequate capital structure is of crucial importance. This paper is concerned with the role of capital structure in the U.S. small enterprises. The data and statistical analysis derived from the empirical research and empirical study that was done in California are discussed. The paper presents the literature review on the capital structure and its theories. Moreover, it identifies the most important factors influencing the optimal capital structure. Last but not least is a short presentation and analysis of the association between particular empirical research questions regarding the capital structure and selected external factors.

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