원문정보
초록
영어
We compartmentalize R&D into R (research) and D (development), and investigate their association with important corporate financing decisions. We show that R is more positively associated with cash holdings than D, and that only R is sensitive to cash flows. These results are consistent with higher uncertainty and information asymmetry of R imposing more severe financial constraints relative to D. Supporting the financial constraint explanation, higher cash flows sensitivity of R is prominent among financially constrained firms. Consistent with D bearing product market risk, D is associated with higher cash holdings when product market competition is severe, but we do not find the same result for R. Lastly, we find negative association between leverage and R but not D.
목차
1. Introduction
2. Data and summary statistics
2.1. Data and variables
2.2. Summary statistics
3. Cash holdings
3.1. Cash holdings and R&D
3.2. Cash holdings and R vs D
4. Investment-cash flow sensitivity
4.1. Investment-cash flow sensitivity of R&D
4.2. Investment-cash flow sensitivity of R vs D
4.3. Financial constraints and Investment-cash flow sensitivity of R
5. Product market competition
5.1. Product market competition and R&D
5.2. Product market competition and R vs D
6. Capital structure
6.1. Capital structure and R&D
6.2. Capital structure and R vs D
6.3. Book leverage
7. Conclusion
REFERENCES