Studies on capital structure show that firms with below-target debt are more willing to raise debt (if needed) compared to firms with above-target debt. In this paper, I examine how capital structure decisions affect R&D investment policies and firm innovation. I show that firms with...

This paper investigates how flexibility in payout decisions affects firm innovation. Firms which make payout mainly in the form of share repurchase have greater flexibility in making payouts compared to firms which make payout mainly in the form of dividends. I show that firms with greater...

This paper investigates how payout choice (dividend vs. repurchase) affects firm’s R&D spending. Firms that make payouts mainly in the form of share repurchases have greater flexibility in making payout decisions compared to firms that make payouts mainly in the form of dividends. Using system...

In this paper, I examine how capital structure (relative to target) affects the financing of R&D spending and the way firms maintain (smooth) a stable level of R&D spending. I show that firms with below-target debt are more likely to use a greater fraction of proceeds from net debt issuance to...

This paper investigates how flexibility in payout decisions affects firm innovation. Firms that make payout mainly in the form of share repurchase have greater flexibility in making payouts compared to firms that make payout mainly in the form of dividends. I show that firms with greater payout...

Studies on capital structure show that firms with below-target debt are more willing to raise debt (if needed) compared to firms with above-target debt. In this paper, I examine how capital structure adjustments affect firm innovation. I show that firms with below-target debt (willing to raise...