The paper explores whether, and how, capital structure determinants differ across industries. Specifically, we investigate whether the typical capital structure determinants of size, profitability, asset tangibility, non-debt-tax-shields and liquidity affect, in a statistically different way, how capital structure is determined across four different industries: manufacturing, commerce, services, and tourism. We show that even though industry effects have been looked at in the various capital structure determination studies, they have not been thoroughly studied in capital structure literature. We apply an interaction effects methodological approach and show that capital structure determinants do differ in terms of magnitude and direction across industries, concluding that industry specifications should be investigated more thoroughly when exploring the capital structure determination puzzle.

This study analysed the financial literacy (FL) levels of micro and small entrepreneurs (MSMEs) across 13 countries using data from the 2021 OECD/INFE survey. Focusing on the three core aspects of financial literacy—knowledge, behaviour, and attitudes—our analysis reveals that FL levels tend to vary by enterprise size, with small businesses generally scoring higher than micro-enterprises. Moreover, countries’ performances differ across the three FL aspects, and these differences appear to be component rather than country-specific. This study applied the standardised OECD/INFE methodology, enabling cross-country comparisons of MSME financial literacy. The results identify specific strengths and weaknesses across countries and FL components, providing valuable insights into policy design and educational interventions. For instance, while financial behaviour scores are relatively strong, financial attitude scores are consistently lower, indicating a gap that requires targeted attention.

This paper examines the market reaction to the European bank stress test announcement and results release events. Using event study methodology (calculating abnormal returns on a three-day period around the event dates), we find that the market reacts differently between the announcement event and the results release event. We also show that the market seems to positively overreact one day before each event, and that this positive reaction is either fully or partially reversed one day after the event. We thus conclude that researchers should consider both events when exploring the market reaction to stress-testing exercises.

Type of the article: Research ArticleAbstractThe study aims to explore the insurance profiles of SMEs and to identify access gaps across different firm categories, using the Ipsos European Public Affairs survey dataset, which consists of 8,187 SMEs from Europe. This dataset was analyzed using multiple correspondence analysis, cluster analysis, and discriminant analysis. Results show clear evidence of ownership concentration in a few insurance products: commercial motor (64.3% of SMEs own such an insurance), general liability (54.4%), and workers’ compensation (46.1%). On the other hand, uptake is lowest for cyber insurance (15.3%), non-damage business interruption (14.5%), and commercial insurance with business interruption (20.3%); notably, 8.2% report no insurance product ownership. Furthermore, three behavioral clusters were identified: minimally insured (n = 3,604; mean 1.58 policies), moderately insured (n = 2,603; mean 5.22), and broadly insured (n = 1,980; mean 6.73). Also, portfolios exhibit structured “baskets” with frequent co-ownership of general liability and motor (40%). Findings document systematic, demography-linked disparities and actionable access gaps. The study concludes that persistent disparities in access are linked to firm size, age, and turnover, underscoring the need for tailored policy measures and market solutions to address inclusion gaps. The practical value of this study lies in providing evidence-based insights for insurers, regulators, and policymakers seeking to expand SME risk protection.AcknowledgmentWe gratefully acknowledge EIOPA for providing access to the SME insurance dataset used in this study. 

The authors have requested that this preprint be removed from Research Square.

Purpose: The purpose of this paper is to add to the existing literature about whether and how a continuous belief-update mechanism affects investors' risk perceptions in crowdfunding. The authors build on existing literature on the impact of a continuous belief-update mechanism on return expectations and risk perceptions, as a result of the funders' personal return and risk experiences, and apply this approach to the crowdfunding area. The authors thus add two specific insights about these dynamic new markets. First, the authors measure the perceived risk along multiple dimensions. Second, the authors consider how perceived risk differs across experienced investors and inexperienced investors, using two levels of analysis.Design/methodology/approach: The paper uses a unique data set of survey respondents on crowdfunding with financial returns. The data set covers Germany, Poland and Spain. Survey data were derived by market research conducted in two stages. The first stage consists of two questions asked within an omnibus survey conducted by computer-assisted telephone interviews. In the second stage, multiple questions (including QA.1 and QA.2 and demographics) were included in an online survey or computer-assisted web interview for the same three countries.Findings: The authors find that experienced investors perceive risks at lower levels than users that are aware of crowdfunding, but have not yet had the experience of an actual investment. The authors also find that investors, who invest larger proportions of their savings in crowdfunding with financial returns, perceive risks even lower than “lighter” investors, for the majority of risks the authors investigate.Research limitations/implications: The study is limited in three European countries and explores crowdfunding with financial returns only.Practical implications: The study suggests that investors' participation and activity in crowdfunding with financial returns can be increased, either via providing incentives for “first investment” or via the creation of investment simulators.Originality/value: This study contributes to the following three areas. First, the authors shed new evidence on the dynamics of crowdfunding with financial returns and explore how decisions are being made in a context of reverse information asymmetries. Second, the authors explore how the “crowd” reshapes risk perceptions via a belief-update mechanism; this is of high importance under the absence of traditional financial intermediaries, which increases the severity of information asymmetries. Third, the authors enrich literature associated with how laypeople take investment decisions, showing how prior experience affects investment decision making.