This study examines the extent to which financing constraints affect the research and development (R&D) expenditure of Indian manufacturing firms during the period 1991–2011. Using dynamic R&D investment model, we find significant positive relationship between a firm's R&D expenditure and...

A distinct feature of many of the economies is the presence of business group (BG) firms. These group affiliated firms are known by various names such as Keiretsu in Japan, Chaebol in Korea, Jituanqiye in Taiwan, grupos economics in Latin America, business houses in India. Even though there are...

In this paper, we examine firms' capital structure adjustment behavior and estimate their "speed of adjustment" toward optimal leverage ratios by employing a dynamic, partial adjustment model. We find that sample firms on an average offset half of the deviation from their target leverage ratios...