Firm Level Investment and R&amp;D in France and the United States: A Comparison

Mulkay, Benoît; Hall, Bronwyn H.; Mairesse, Jacques

doi:10.1007/978-3-642-56601-1_19

Cited by 142 publications

(88 citation statements)

References 19 publications

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“…Compared to the vast literature testing for the presence of financing constraints on capital investment, relatively little research focuses on R&D. An excellent review of the existing literature appears in Hall (2002). Some studies find evidence suggesting that firms in the United States and other countries face financing constraints for R&D, including Hall (1992), Himmelberg and Petersen (1994), Mulkay, Hall, and Mairese (2001), and Bond, Harhoff, and Van Reenen (2003). But previous studies have not explored the implications of financing constraints for aggregate R&D. Nor have previous studies typically examined the role of public equity as a source of finance.…”

Section: Randd and Equity Financementioning

confidence: 99%

Financing Innovation and Growth: Cash Flow, External Equity, and the 1990s R&D Boom

Brown

Fazzari

Petersen³

2009

The Journal of Finance

1,495

760

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The financing of R&D provides a potentially important channel to link finance and economic growth, but there is no direct evidence that financial effects are large enough to impact aggregate R&D. U.S. firms finance R&D from volatile sources: cash flow and stock issues. We estimate dynamic R&D models for high-tech firms and find significant effects of cash flow and external equity for young, but not mature, firms. The financial coefficients for young firms are large enough that finance supply shifts can explain most of the dramatic 1990s R&D boom, which implies a significant connection between finance, innovation, and growth. Copyright (c) 2009 The American Finance Association.

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Section: Randd and Equity Financementioning

confidence: 99%

Financing Innovation and Growth: Cash Flow, External Equity, and the 1990s R&D Boom

Brown

Fazzari

Petersen³

2009

The Journal of Finance

1,495

760

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“…In this formulation, the coefficients of cash‐flow variables are assumed to capture only the transitory effects of financial constraints on firm investment. To consider the long‐term effect of cash flow, Mulkay et al. (2001) augment by introducing the cash‐flow ratio with two lags.…”

Section: Modelling Investment Behaviourmentioning

confidence: 99%

“…14 14 Similar to Mulkay et al. (2001), we test for the long‐term effect of cash flow on farm investment by introducing cash‐flow ratio lagged two periods prior. …”

mentioning

confidence: 99%

Exploring Farm Investment Behaviour in Transition: The Case of Russian Agriculture

Bokusheva¹,

Bezlepkina²

2009

J Agricultural Economics

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This paper analyses the investment behaviour of Russian farms during the period of economic stabilisation that followed Russia's financial crisis of 1998, and is the first to apply the error-correction investment model to describe farms' investment behaviour in the transitional context. Additionally, the paper employs the error-correction and the adjustment-cost model to test for differences in the investment behaviour between various farm categories. The results show that in general Russian farms exhibited an error-correcting behaviour in the period under investigation. From 1999 to 2005 the output-capital gap was closed by an average rate of 10% per year. Estimates of the adjustment-cost model show that Russian farm investments are very sensitive to the sales-capital ratio, suggesting that Russian farms exhibit increasing returns to scale and positive expectations about future revenues. Yet, such farm characteristics as ownership structure, access to input markets and also regional specifics were found to be decisive for farm investment not only in the short but long term too. Finally, the results show that the adjustment-cost model is adequate for the evaluation of differences in short-term investment behaviour, whereas it is noticeably less powerful for investigating differences in the farms' long-term investment behaviour. Copyright (c) 2009 The Authors. Journal compilation (c) 2009 The Agricultural Economics Society.

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“…Cincera () finds a positive impact of cash flow on the firms' investment decisions, although these effects appear to play a considerably more important role for investment in physical capital than for R&D investment. Mulkay, Hall, and Mairesse () show that cash flow appears to be more important in the United States than in France for any type of investment.…”

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confidence: 99%

R&D AND CREDIT RATIONING IN SMEs

Mancusi

Vezzulli

2014

Economic Inquiry

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We study the effects of credit rationing on research and development (R&D) investment using survey and accounting data on a large representative sample of manufacturing small‐ and medium‐sized enterprises (SMEs). Our econometric model accounts for the endogeneity of our credit rationing indicator and employs an innovative theory‐based identification strategy. We find that credit rationing has a significantly negative effect on both the probability to set up R&D activities and on the level of R&D spending (conditioned on the R&D decision), but the overall estimated reduction in R&D spending is largely to be associated with the first effect. (JEL G21, D82, O32, C35)

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Firm Level Investment and R&D in France and the United States: A Comparison

Cited by 142 publications

References 19 publications

Financing Innovation and Growth: Cash Flow, External Equity, and the 1990s R&D Boom

Financing Innovation and Growth: Cash Flow, External Equity, and the 1990s R&D Boom

Exploring Farm Investment Behaviour in Transition: The Case of Russian Agriculture

R&D AND CREDIT RATIONING IN SMEs

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