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 InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 38945.
Date of creation: 17 Mar 2012
Date of revision:
Publication status: Published in Journal of International Entrepreneurship 2.10(2012): pp. 158-175
R&D intensity; leverage; Tobit model; India;
Other versions of this item:
- Saibal Ghosh, 2012. "Does R&D intensity influence leverage? Evidence from Indian firm-level data," Journal of International Entrepreneurship, Springer, vol. 10(2), pages 158-175, June.
- O32 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Management of Technological Innovation and R&D
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-05-29 (All new papers)
- NEP-CFN-2012-05-29 (Corporate Finance)
- NEP-INO-2012-05-29 (Innovation)
- NEP-SBM-2012-05-29 (Small Business Management)
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.:
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