Small-firm uniqueness and signaling theory

Özet

\r\n The purpose of this paper is two-fold. First, we develop a theory of small firm uniqueness. Instead of using an exogenous definition of firm size typical of the extant literature, we allow firms to choose whether they are a "small firm" through the instrument of the SEC's SB-2 program. Second, we test empirical hypotheses that follow from the theory. We find strong empirical evidence in support of the small-firm uniqueness theory.\r\n