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The ‘irrelevance of irrelevance’ in entrepreneurial finance: modeling the cost of capital in start‐ups beyond Modigliani–Miller
Author(s) -
Koch Lambert T.,
Kuhn Wolfgang,
Gruenhagen Marc,
Hisrich Robert D.
Publication year - 2010
Publication title -
strategic change
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.527
H-Index - 16
eISSN - 1099-1697
pISSN - 1086-1718
DOI - 10.1002/jsc.856
Subject(s) - miller , economics , corporate finance , cost of capital , entrepreneurial finance , capital (architecture) , capital structure , financial economics , finance , entrepreneurship , classical economics , neoclassical economics , business , profit (economics) , history , ecology , debt , archaeology , biology
A formal model of the cost of capital specific to new ventures can be used as a platform for discussion on entrepreneurial finance in the aftermath of the 2008–2009 banking crisis.