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Does cash flow cause investment and R&D: an exploration using panel data for French, Japanes and United States scientific firms Author info | Abstract | Publisher info | Download info | Related research | Statistics Bronwyn H. Hall
Jacques Mairesse
Benoit Mulkay
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The role of financial institutions and corporate governance in the conduct and performance of industrial firrm, especially in the area of technological innovation and international competition has been hotly debated in the recent past. The results presented here are a contribution to the empirical evidence on the behavior of individual firms that exist in somewhat different institutional environments. Using a Panel Data version of the Vertor Auto Regressive (VAR) methodology, we test for causal relationship among sales and cash flow on the one hand and investment and R and D on the other, using three large panels of firms in the scientific (high technology) sectors in the United States, Rance, and Japan. Our findings are that both invest- ment and R and D are more highly sensitive to cash flow and sales in the United States than in Rance and Japan. Correspondingly, both investment and R and D predict both cash flow and sales positively in the United States, while the impact is somewhat more mixed in the other countries.
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Paper provided by Institute for Fiscal Studies in its series IFS Working Papers with number
W98/11.
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Date of creation: Oct 1998Date of revision:
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Paper Bronwyn H. Hall, Jacques Mairesse, Lee Branstetter, and Bruno Crepon., 1998.
"Does Cash Flow Cause Investment and R& D: An Exploration Using Panel Data for French, Japanese, and United States Scientific Firms ,"
Economics Working Papers
98-260, University of California at Berkeley.
[Downloadable!] Hall, B. & Mairesse, J. & Branstetter, L. & Crepon, B., 1998.
"Does Cash Flow cause Investment and R&D: An Exploration Using Panel Data for French, Japanese, and United States Scientific Firms ,"
Economics Papers
142, Economics Group, Nuffield College, University of Oxford.
Bronwyn H. Hall & Jacques Mairesse & Lee Branstetter & Bruno Crepon, 1999.
"Does Cash Flow Cause Investment and R&D: An Exploration Using Panel Data for French, Japanese, and United States Scientific Firms ,"
Finance
9902005, EconWPA.
[Downloadable!] References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.: Hall, Bronwyn H. & Mairesse, Jacques, 1995.
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Zvi Griliches & Jacques Mairesse, 1991.
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Zvi Griliches & Jacques Mairesse, 1991.
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NBER Chapters ,
in: Productivity Growth in Japan and the United States, pages 317-348
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in: R&D and Productivity: The Econometric Evidence, pages 157-186
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"Comparing Productivity Growth: An Exploration of French and U.S. Industrial and Firm Data ,"
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in: International Volatility and Economic Growth: The First Ten Years of The International Seminar on Macroeconomics, pages 45-82
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"Banks and Securities Markets: Corporate Financing in Germany and the UK ,"
CEPR Discussion Papers
433, C.E.P.R. Discussion Papers.
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Crepon, Bruno & Kramarz, Francis & Trognon, Alain, 1997.
"Parameters of interest, nuisance parameters and orthogonality conditions An application to autoregressive error component models ,"
Journal of Econometrics ,
Elsevier, vol. 82(1), pages 135-156.
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Bronwyn H. Hall & Jacques Mairesse, 2000.
"Univariate Panel Data Models and GMM Estimators: An Exploration Using Real and Simulated Data ,"
Econometric Society World Congress 2000 Contributed Papers
1114, Econometric Society.
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Full
references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
Jörn Hendrich Block & Andreas Thams, 2007.
"Long-Term Orientation In Family And Non-Family Firms: A Bayesian Analysis ,"
SFB 649 Discussion Papers
SFB649DP2007-059, Sonderforschungsbereich 649, Humboldt University, Berlin, Germany.
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Klaus Gugler, 2003.
"Corporate governance and investment ,"
International Journal of the Economics of Business ,
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Spiros Bougheas & Holger Görg & Eric Strobl, 2003.
"Is R & D Financially Constrained? Theory and Evidence from Irish Manufacturing ,"
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"La fonction R&D et la latitude managériale:une analyse théorique ,"
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Other versions: Bruno Amable & Jean-Bernard Chatelain & Kirsten Ralf, 2004.
""Deep Pockets": Research and Development Persistence and Economic Growth ,"
Money Macro and Finance (MMF) Research Group Conference 2004
47, Money Macro and Finance Research Group, revised 13 Oct 2004.
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Tomasz Mickiewicz & Kate Bishop & Urmas Varblane, 2004.
"Financial Constraints in Investment - Foreign Versus Domestic Firms. Panel Data Results From Estonia, 1995-1999 ,"
William Davidson Institute Working Papers Series
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Polona Domadenik & Janez Prasnikar & Jan Svejnar, 2007.
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Open Economies Review ,
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"The Financing of Research and Development ,"
Department of Economics, Working Paper Series
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"The Financing of Research and Development ,"
Finance
0303003, EconWPA.
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1982, Institute for the Study of Labor (IZA).
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Working Papers
173, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
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Kaoru Hosono & Masayo Tomiyama & Tsutomu Miyagawa, 2004.
"Corporate governance and research and development: evidence from Japan ,"
Economics of Innovation and New Technology ,
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Dirk Engel & Torge Middendorf, 2007.
"Investment, Internal Funds and Public Banking in Germany ,"
Ruhr Economic Papers
0007, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
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Bronwyn H. Hall & Jacques Mairesse, 2000.
"Univariate Panel Data Models and GMM Estimators: An Exploration Using Real and Simulated Data ,"
Econometric Society World Congress 2000 Contributed Papers
1114, Econometric Society.
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Petri Rouvinen, 2002.
"R&D-Productivity Dynamics: Causality, Lags, and "Dry Holes" ,"
Journal of Applied Economics ,
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Macroeconomics
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William Davidson Institute Working Papers Series
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Economics Working Papers
ECO2004/13, European University Institute.
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