An Empirical Investigation on Loan Applications and Fear of Rejection of External Financing in the Foodservice Industry
Keywords
External financing, fear of rejection, loan application, small business finances, small-cap foodservice firms
Abstract
This article examines the loan application decision patterns of small-cap foodservice firms and the causes of these firms' discouragement (fear of rejection) in relation to their external finance-seeking efforts. We utilize information and data collected by the Survey of Small Business Finances on a variety of aspects related to small-cap foodservice firm owners and firms, including market-lender characteristics, use of financial services, and income and balance sheet information in the United States. Our primary findings reveal that sufficient liquidity and owner net worth reduce external finance seeking. In addition, firm credit quality and owner minority status increase discouragement toward external finance seeking, while education reduces fear of rejection.
Publication Date
1-1-2018
Number of Pages
462-481
Document Type
Article
Language
English
Source Title
Journal of Foodservice Business Research
Volume
21
Issue
4
Copyright Status
Unknown
College
Rosen College of Hospitality Management
STARS Citation
Altin, Mehmet; Kizildag, Murat; and Bufquin, Diego, "An Empirical Investigation on Loan Applications and Fear of Rejection of External Financing in the Foodservice Industry" (2018). Faculty Scholarship and Creative Works. 665.
https://stars.library.ucf.edu/ucfscholar/665