In the paper, a theoretical model of the determinants of innovation behaviour and investment is developed. The model is estimated with micro-data for West- German manufacturing firms from the ifo firm panel. The empirical results reveal a positive effect from firm size and market power on...

Introduction -- Background: Cost-of-Capital in the Finance Literature -- Previous Results on Cost-of-Capital Practices -- Research Philosophy and Ethics -- Empirical Research Approach and Methods -- Primary Research: Expert Interviews -- Primary Research: Company Survey -- Conclusion and...