Does R&D intensity influence leverage? Evidence from Indian firm-level data
The 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.
|Date of creation:||17 Mar 2012|
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|Publication status:||Published in Journal of International Entrepreneurship 2.10(2012): pp. 158-175|
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