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Nature of financial constraints and R&D intensity

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  • Banerjee, Pradip

Abstract

•Firms tend to increase R&D intensity despite facing equity-focused constraints.•Firms facing debt-focused constraints reduce R&D intensity.•Unidimensional accounting-based measures of financial constraints fail to capture the true constraints.•The nature of a firm's financial constraints may influence its strategic investment decisions.

Suggested Citation

  • Banerjee, Pradip, 2022. "Nature of financial constraints and R&D intensity," Finance Research Letters, Elsevier, vol. 50(C).
    • Handle: RePEc:eee:finlet:v:50:y:2022:i:c:s1544612322003907
    DOI: 10.1016/j.frl.2022.103184
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