Döttling, Robin; Ladika, Tomislav; Perotti, Enrico - 2016
response to reduced debt capacity. We model how firms' payout and cash holding policies are affected by this shift. Our insight … is that the creation of intangibles is largely achieved by human capital investment and requires lower upfront outlays … dilution. Our empirical evidence confirms that firms with higher intangible investment have lower upfront investment needs …