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Debt financing and R&D investments

Author

Listed:
  • Martínez-Ros, Ester
  • Tribo Gine, José Antonio

Abstract

Our model shows that firm's debt-equity ratio decreases with R&D investment returns, firms' R&D specialization degree, and internal funds availability. Our basic hypothesis is that firms specialized in R&D assimilate faster than others their R&D investment.

Suggested Citation

  • Martínez-Ros, Ester & Tribo Gine, José Antonio, 1999. "Debt financing and R&D investments," DEE - Working Papers. Business Economics. WB 6515, Universidad Carlos III de Madrid. Departamento de Economía de la Empresa.
    • Handle: RePEc:cte:wbrepe:6515
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    References listed on IDEAS

    as
    1. Bronwyn H. Hall, 1992. "Investment and Research and Development at the Firm Level: Does the Source of Financing Matter?," NBER Working Papers 4096, National Bureau of Economic Research, Inc.
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    More about this item

    Keywords

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    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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