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Alternative investments as a financing tool for small and medium enterprises

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Listed:
  • Thomas Poufinas
  • Maria Polychronou

Abstract

Alternative investments more than ever have come to the spotlight as they have attracted over the last few years the interest of asset owners and asset managers. The former are nothing but individual or institutional investors, such as pension schemes. The latter are the individuals or organizations that direct or allocate the available assets to the appropriate securities. Over the last decade there has been a shift from traditional, listed equity and fixed income to venture capital - private equity, private debt, exchange traded funds, and other investment means, also known as alternative investments. In this paper we investigate the parameters that affect small and medium enterprise financing through exchange traded funds and venture capital. We employ econometric models to find the link between the exchange traded funds and venture capital that invest in small and medium enterprises in a country and the economy of the relevant country. We find that the overall condition of the economy of a country as represented by the macroeconomic figures and certain indices is important for the choice of the country for the domiciliation, size or availability of exchange traded funds and venture capital.

Suggested Citation

  • Thomas Poufinas & Maria Polychronou, 2018. "Alternative investments as a financing tool for small and medium enterprises," Bulletin of Applied Economics, Risk Market Journals, vol. 5(2), pages 13-44.
  • Handle: RePEc:rmk:rmkbae:v:5:y:2018:i:2:p:13-44
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    References listed on IDEAS

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    Cited by:

    1. Charis Vlados & Dimos Chatzinikolaou & Fotios Katimertzopoulos & Theodore Koutroukis, 2019. "Regional underdevelopment and less developed business ecosystems: The case of Eastern Macedonia and Thrace," Bulletin of Applied Economics, Risk Market Journals, vol. 6(2), pages 31-44.
    2. Katimertzopoulos, Fotios & Vlados, Charis & Koutroukis, Theodore, 2020. "Regional Innovation Systems and Less Developed Business Ecosystems: Fundamental Concepts and Theoretical Trends," DUTH Research Papers in Economics 7-2020, Democritus University of Thrace, Department of Economics.

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    More about this item

    Keywords

    alternative investments; exchange traded funds; venture capital; small and medium enterprises; financing.;
    All these keywords.

    JEL classification:

    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O50 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - General

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