Demeulemeester, Sarah; Hottenrott, Hanna - 2015
Financing research and development (R&D) through loans is usually a costly endeavor. Information asymmetry, outcome … shows that recipients of public R&D grants, on average, face lower costs of debt. The findings also suggest that a process … of certification in which the subsidy signals the quality of the firm's R&D to external lenders rather than a 'resource …