Debt-equity choices, R&amp;D investment and market timing

Lewis, Catherine; Tan, Yongxian

doi:10.1016/j.jfineco.2016.01.017

Cited by 56 publications

(39 citation statements)

References 36 publications

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“…In the USA, a typical ratio of research and development for an industrial company is about 3.5% of revenues; this measure is called BR&D intensity.^A high technology company such as a computer manufacturer might spend 7%. Anything over 15% is remarkable and usually gains a reputation for being a high technology company [2,4,12,18]. Research has shown that firms with a persistent R&D strategy outperform those with an irregular or no R&D investment program [6,10].…”

Section: Methodologies For Assessing the Impact Of Technological Innomentioning

confidence: 99%

Methods to Assess the Value of New Technologies: the Case of Consumer Sentiment Towards Digital Wallet Technology

Westland

2017

Data-Enabled Discov. Appl.

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New technologies and scientific findings are typically announced in peer-reviewed scholarly journals which seldom assess the economic or social consequences of the technology, even though this may be important in motivating funding for future extensions and commercial applications of the research. This paper describes new methodologies that have become available with the advent of social network data and computationally intensive statistical methods to ascertain the value of new technologies. It provides an example application of two methodologies to answer basic questions in a specific industry, regarding the dynamic processes governing IP protection, innovation law, market structure and evolution, and rates or entry and exit. It also proposes a third affective technology for revealing true consumer sentiment and discusses risks and controls of collecting such affective data, which is commercially important in areas such as film and television review, food and beverage consumption, and in general arenas that display strong non-verbal or emotive characteristics, which would be likely subjects for data acquisition. Our application collected 449,145 Twitter postings on consumer perceptions of digital wallet payment systems and collected all available information on patents in the US Patent and Trademark Office's (USPTO) databases on digital wallet technologies. Automated lexical analysis was programmed and applied to individual tweets to extract consumer sentiment concerning specific technologies in the USPTO database, and assessed using customized econometric methods. The application of methodologies in this topic area can provide guidance for using newly available datasets to assess the potential economic value and consumer acceptance of new technologies arising out of the laboratory.

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Section: Methodologies For Assessing the Impact Of Technological Innomentioning

confidence: 99%

Methods to Assess the Value of New Technologies: the Case of Consumer Sentiment Towards Digital Wallet Technology

Westland

2017

Data-Enabled Discov. Appl.

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“…Despite the global economic downturn, including the low interest rate and the increasing instability in the international financial and commodity market, the R&D investments of several countries are steadily increasing (Lewis & Tan, 2016;Schatz & Bashroush, 2017…”

Section: Global Randd Investment Trendmentioning

confidence: 99%

The evaluation index improvement for the relocation of research equipment

Yoon

2019

Eur J Gov Econ

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In this paper, evaluation index improvement for research equipment relocation is presented and discussed to boost the effectiveness of research equipment management. The analytic hierarchy process (AHP) model was designed for the evaluation index improvement for research equipment relocation, and the pairwise comparison scale was set up based on the importance of each evaluation criterion. The consistency rate (CR) was measured, and it was confirmed that the decision-making was reasonable. The improvement of the evaluation index was necessary for the objective and fair relocation of research equipment. Therefore, the evaluation index for the relocation of research equipment was designed for an objective and fair evaluation. It is hoped that the study findings will be very useful and will contribute greatly to the professors, researchers, and policymakers involved in science and technology policymaking and R&D.

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“…By rearranging the preceding equation, we obtain the following:

{italicInvestment}_{t} = {italicInternal}_{t} + {italicAssetSale}_{t} + {italicSecIss}_{t},

where for a given year t , Internal is the funds available to a firm internally and it is cash flow ( CF ) minus change in cash holdings (Δ Cash ) . We define external financing through security issuance ( SecIss ) as the change in debt issuance plus the change in equity issuance minus dividend payment (Bradshaw, Richardson, and Sloan, ; Butler et al., ; Lewis and Tan, ). A positive value for SecIss indicates the funds are obtained from debt and net equity issuance, whereas a negative value for SecIss indicates the funds are used for debt retirement or net equity repurchases after dividends.…”

Section: Related Literature and Motivationmentioning

confidence: 99%

Size of Financing Need and the Choice between Asset Sales and Security Issuances

Desai¹,

Gupta

2018

Financial Management

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We study the effect of the size of financing need on a firm's choice between selling assets and issuing securities to finance its investments. The balance sheet effect predicts that a firm prefers to sell assets when the financing need is relatively small as there is less information asymmetry regarding the value of a (small) subset of its assets. When the financing need is large, a firm prefers issuing securities to selling assets. We find evidence supporting the prediction. Our findings remain unchanged when we employ measures of financing need that are relatively independent of the actual amount of financing raised.

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Debt-equity choices, R&D investment and market timing

Cited by 56 publications

References 36 publications

Methods to Assess the Value of New Technologies: the Case of Consumer Sentiment Towards Digital Wallet Technology

Methods to Assess the Value of New Technologies: the Case of Consumer Sentiment Towards Digital Wallet Technology

The evaluation index improvement for the relocation of research equipment

Size of Financing Need and the Choice between Asset Sales and Security Issuances

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