R&D Subsidies and Firms’ Cost of Debt

Information asymmetry and outcome uncertainty increase the cost of debt for R&D. This study shows that recipients of public R&D grants face lower costs of debt. Immediate effects suggest that quality certification explains this observation. For younger ventures certification is accompanied by liquidity effects. Short-term effects stem from grants for research. In addition, longer-term liquidity effects point to grants facilitating young firms’ investments in R&D that advance project maturity.

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Year of publication:	2017
Authors:	Hottenrott, Hanna ; Demeulemeester, Sarah
Publisher:	Kiel, Hamburg : ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften, Leibniz-Informationszentrum Wirtschaft

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Series:	Beiträge zur Jahrestagung des Vereins für Socialpolitik 2017: Alternative Geld- und Finanzarchitekturen - Session: Innovation and R&D ; D13-V3
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Conference Paper
Language:	English
Other identifiers:	hdl:10419/168093 [Handle] RePEc:zbw:vfsc17:168093 [RePEc]
Classification:	O31 - Innovation and Invention: Processes and Incentives ; O38 - Government Policy ; L26 - Entrepreneurship ; G30 - Corporate Finance and Governance. General
Source:	EconStor

Persistent link: https://www.econbiz.de/10011712606