Publication: R&D investment and financial contracting in spanish manufacturig firms
| dc.affiliation.dpto | UC3M. Departamento de Economía de la Empresa | es |
| dc.contributor.author | Martínez-Ros, Ester | |
| dc.contributor.author | Tribo Gine, José Antonio | |
| dc.date.accessioned | 2006-11-08T15:06:53Z | |
| dc.date.available | 2006-11-08T15:06:53Z | |
| dc.date.issued | 2002-03 | |
| dc.description.abstract | This paper presents a model in which a firm with a degree of R and D specialization raises external funds to develop a two-period project that involves some non-verifiable returns (R and D-type of project). Taking into account a possible opportunistic behavior by the manager, we find out that the optimal firm's debt equity ratio is negatively related to the firm's degree of R and D specialization, its internal funds, and the output generated by the R and D project. Moreover, the expected R and D output of the firm is related negatively to the firm's leverage and positively to the firm's degree of R and D specialization as well as the amount of internal funds. The novelty of this work is to derive these results from strategic default consideration of the managers of firms specialized in R and D investments, as opposed to the standard collateral arguments concerning debt financing. This has a consequence of a lower growth of the firm's debt-equity ratio once we compare firms specialized on R and D investments with others non specialized in these activities. We confirm our main theoretical findings making use of a Spanish data set of manufacturing firms during the period 1990-94. | |
| dc.format.extent | 1757367 bytes | |
| dc.format.mimetype | application/pdf | |
| dc.identifier.repec | wb020904 | |
| dc.identifier.uri | https://hdl.handle.net/10016/136 | |
| dc.language.iso | eng | |
| dc.language.iso | eng | |
| dc.relation.ispartofseries | UC3M Working Papers. Bussiness Economics | |
| dc.relation.ispartofseries | 2002-04 | |
| dc.rights.accessRights | open access | |
| dc.subject.eciencia | Empresa | |
| dc.title | R&D investment and financial contracting in spanish manufacturig firms | |
| dc.type | working paper | * |
| dspace.entity.type | Publication |
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