Thakor, Richard T.; Lo, Andrew W. - 2021
The interaction between product market competition, R&D investment, and the financing choices of R&D-intensive firms on … interaction, we develop a model which predicts that as competition increases, R&D-intensive firms will: (1) increase R …&D investment relative to assets in place that support existing products; (2) carry more cash; and (3) maintain less net debt. Using …