R&D Investment and Financing Constraints: Panel Data Analysis on Listed Manufacturing Companies in Japan
Year: 2020
Type: article
Abstract: This study examines the impact of financing constraints and external finance on research and development (R&D) investment. We estimate a dynamic R&D investment model, using panel data on listed manufacturing companies in Japan during the period 2001－2017. We find that R&D investment depends on its previous levels, which could help to reduce adjustment costs. Inconsistent with previous studies, we find no evidence that cash flow and equity finance significantly related to the level of R&D investment. These results suggest that listed manufacturing companies in Japan, unlike those in US and Europe countries, do not face financing constraints for R&D investment and not use equity finance as an additional financing source.
Author: 池田, 雄哉
Language: Japanese
Subfield: Finance
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W7208041401