Chiao, Chaoshin - In: Applied Financial Economics 12 (2002) 2, pp. 105-121
This paper is motivated by the hypothesis by Hall (1992) who claims that firms prefer to use debt to finance physical investment but not R&D, due to the risky nature of R&D. Employing a dynamic simultaneous approach and R&D Master File, the relationship between debt, R&D and physical investment...