Does R&D intensity influence leverage? Evidence from Indian firm-level data
AbstractThe paper examines the association between corporate leverage and their investment in R&D. Towards this end, it develops certain testable propositions. These propositions are tested using a dataset of manufacturing firms in India covering the period 1995-2005. The estimates support the fact that firms which make high efforts on R&D investments exhibit lower leverage ratios. Additionally, the estimates reveal that the dampening effect of R&D-intensity on leverage is the highest for foreign private firms. For state-owned firms however, R&D activity appears to be positively associated with leverage.
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Bibliographic InfoArticle provided by Springer in its journal Journal of International Entrepreneurship.
Volume (Year): 10 (2012)
Issue (Month): 2 (June)
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Web page: http://www.springerlink.com/link.asp?id=112039
R&D intensity; Leverage; Tobit model; Financial crisis; India; E22; E44;
Other versions of this item:
- Ghosh, Saibal, 2012. "Does R&D intensity influence leverage? Evidence from Indian firm-level data," MPRA Paper 38945, University Library of Munich, Germany.
- O32 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Management of Technological Innovation and R&D
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