Corporate research &amp; development investments international comparisons

Bhagat, Sanjai; Welch, Ivo

doi:10.1016/0165-4101(94)00391-h

Cited by 328 publications

(211 citation statements)

References 26 publications

Supporting

Mentioning

183

Contrasting

Unclassified

Order By: Relevance

“…This result is consistent with evidence reported in Hall, Mairesse, Branstetter, and Crepon (1999) for the U.S., France, and Japan during an earlier time period, which basically 13 finds that R&D and investment on the one hand, and sales and cash flow on the other, are simultaneously determined in the United States (neither one "Granger-causes" the other, whereas in the other countries, there is little feedback from sales and cash flows to the two investments. Using a nonstructural R&D investment equation together with data for the US, UK, Canada, Europe, and Japan, Bhagat and Welch (1995) found similar results for the 1985-1990 period, with stock returns predicting changes in R&D more strongly for the US and UK firms.…”

supporting

confidence: 56%

The Financing of Research and Development

Hall

2002

Oxford Review of Economic Policy

1,398

812

View full text Add to dashboard Cite

Evidence on the "funding gap" for R&D is surveyed. The focus is on financial market reasons for underinvestment in R&D that persist even in the absence of externality-induced underinvestment. The conclusions are that 1) small and new innovative firms experience high costs of capital that are only partly mitigated by the presence of venture capital; 2) evidence for high costs of R&D capital for large firms is mixed, although these firms do prefer internal funds for financing these investments; 3) there are limits to venture capital as a solution to the funding gap, especially in countries where public equity markets are not highly developed; and 4) further study of governmental seed capital and subsidy programs using quasi-experimental methods is warranted.

show abstract

supporting

confidence: 56%

The Financing of Research and Development

Hall

2002

Oxford Review of Economic Policy

1,398

812

View full text Add to dashboard Cite

show abstract

“…Sanjai and Welch [24] compared the determinants of R&D in five OECD regions and found some common factors and differences among those countries. In addition, García-Quevedo et al [25] compared the young firms and mature firms in their relationship with R&D drivers.…”

Section: Impact Of Related Party Transactions On Randd Investmentmentioning

confidence: 99%

“…R&D is regarded as a firm's strategic decision to boost its competitive advantage in subsequent years, and decision of R&D expenditure levels involve in many different factors [20][21][22][23]. Prior studies search for the determinants that decide firms' R&D expenditure and list up non-linear relationship with size, internal and external organizations of R&D, a firm's financial capabilities, corporate structure, ownership, market structure or environment and others as the factors (e.g., [24][25][26]). …”

Section: Impact Of Related Party Transactions On Randd Investmentmentioning

confidence: 99%

See 1 more Smart Citation

Does R&D Expenditure with Heavy Related Party Transactions Harm Firm Value?

Kim

Yoo

2017

Sustainability

View full text Add to dashboard Cite

Related party transactions (RPTs) are transactions made among affiliated companies in a conglomerate group. Heavy RPT ratio means high level of dependence of a firm on the captive market within a conglomerate group. This may depress the firm's incentive to invest in R&D and the high level of R&D expenditure of a firm with heavy RPT ratio may not be efficiently led to high level of firm performances. Relating these RPTs with firm's R&D expenditures together, we investigate the impact of RPTs on firm's R&D expenditures and the effectiveness of R&D with heavy RPT ratio on firm performances, subject to such transactions made by Korean conglomerate groups for the period 2000 to 2010. Results show that higher RPT ratio is negatively associated with R&D expenditures; and the positive relationship between R&D and firm values are negatively moderated by increase in RPTs. Classifying the types of R&D expenditures into research expenses and development expenses, the results are differentiated between them. Evidencing the impact of RPTs on R&D spending and the subsequent effectiveness on firm values, this study helps the related parties to understand the nature of RPTs and conglomerate groups, related to R&D and firm performances, and to make relevant decisions.

show abstract

“…Therefore debt increase raises the external finance premium and thus reduces investment. 4 Moreover, spending on R&D produces fewer collateralizable assets and R&D activities have knowledge externalities, all of which tends to raise the external finance premium.…”

Section: Characteristics Of Randd Activities and The Tfp Growth Of The mentioning

confidence: 99%

Debt, R&D Investment and Technological Progress: A Panel Study of Japanese Manufacturing Firms in the 90s

Ogawa

2004

SSRN Journal

View full text Add to dashboard Cite

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in AbstractBased on a panel data set of Japanese manufacturing firms in research-intensive industries, we investigate quantitatively the extent to which debt outstandings in the 90s affected the firm's R&D activities. We find that massive debt outstandings had significantly negative effect on R&D investment in the 90s. We also find that investment on R&D was closely linked to the firm-level total factor productivity growth in the 90s. In fact, ten-percentage-point increase of debt-asset ratio lowered the firm-level total factor productivity growth rate by 0.72 percentage point for [1999][2000][2001] by way of withering R&D activities, while the firm-level TFP growth rate remains almost intact for 1988-91. JEL Classification Number: D21,D24 and O32

show abstract

Corporate research & development investments international comparisons

Cited by 328 publications

References 26 publications

The Financing of Research and Development

The Financing of Research and Development

Does R&D Expenditure with Heavy Related Party Transactions Harm Firm Value?

Debt, R&D Investment and Technological Progress: A Panel Study of Japanese Manufacturing Firms in the 90s

Contact Info

Product

Resources

About