Financing R&D in mature companies: An empirical analysis

Abstract

We study financing patterns of publicly traded R&D-intensive manufacturing firms in Israel. We further characterize R&D-intensive firms by size, physical capital intensity, and whether they issued stocks in the United States, asking whether these features are associated with particular financing patterns. To address these issues, we present, for the first time, adjusted flow of funds charts that treat R&D expenses as a capital outlay (rather than an operating cost that reduces profits, as standard accounting principles prescribe). We also address the question of how R&D inputs should be measured - using R&D expenses or R&D personnel. We construct both expenditure- and personnel-based R&D measures for each firm in our sample, and investigate to what extent these measures are mutually consistent.Cash Flow, Equity, Financing, Flow Of Funds, Government Grants And Subsidies, R&D,

The impact of corporate governance practices on R&D efforts: a look at shareholders' rights, cross-listing, and control pyramid

“…More precisely, such measures are more likely to constrain managers from a mainland European governance model into adopting shareholder rules which apply to United States or UK stock markets. Despite the early empirical article by Blass and Yosha (2003), which found no significant difference in R&D intensity between Israeli firms listed on the Israeli or United States stock markets, to our knowledge no study has yet explored the influence of cross-listing on R&D decisions. We contend that:…”

The Financing of Research and Development

“…In related work using data on Israeli firms, Blass and Yosha (2001) report that R&D-intensive firms listed on the United States stock exchanges use highly equity-based sources of financing, whereas those listed only in Israel rely more on bank financing and government funding. The former are more profitable and faster-growing, which suggests that the choice of where to list the shares and whether to finance with new equity is indeed sensitive to the expected rate of return to the R&D being undertaken.…”

Influência da estrutura de capital nos investimentos em inovação das indústrias listadas na BM&FBOVESPA

“…Devido a sua grande relevância, a inovação empresarial tem sido bastante discutida no meio acadêmico, ganhando destaque em diferentes enfoques, como, por exemplo, a correlação com a estrutura de capital (Abreu et al, 2015;Bartoloni, 2013;Blass & Yosha, 2003;Kayo & Famá, 2004). Com abordagens diferentes acerca da inovação, diversos estudos ratificam a importância da inovação como fator capaz de propiciar vantagem competitiva.…”