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R&D investments and credit lines
Using data for 939 publicly listed firms from 17 European countries over the period from 2004 to 2013, we investigate the effect of used credit lines on R & D investments, controlling for other determinants of R & D investments, i.e., cash flows, cash holdings, sales growth, equity financing...
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| Main Authors: | , , |
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| Format: | Default Article |
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2017
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| Online Access: | https://hdl.handle.net/2134/26407 |
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| _version_ | 1818170995174801408 |
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| author | Yilmaz Guney Ahmet Karpuz Neslihan Ozkan |
| author_facet | Yilmaz Guney Ahmet Karpuz Neslihan Ozkan |
| author_sort | Yilmaz Guney (7199720) |
| collection | Figshare |
| description | Using data for 939 publicly listed firms from 17 European countries over the period from 2004 to 2013, we investigate the effect of used credit lines on R & D investments, controlling for other determinants of R & D investments, i.e., cash flows, cash holdings, sales growth, equity financing, and Tobin's Q. Our estimation results, based on the system-GMM method, show that used credit lines have a positive and significant impact on R & D investments. In addition, we find that this impact is more pronounced for small and young firms than for large and mature firms. These results show that firms use credit lines as part of their liquidity management tools for supporting their R & D investments. Finally, we provide evidence that European firms in bank-based countries increased their use of credit lines for financing their R & D investments during the financial crisis of 2007–2009, while the link between R & D investments and used credit lines became weaker during the European sovereign debt crisis of 2010–2013. |
| format | Default Article |
| id | rr-article-9504068 |
| institution | Loughborough University |
| publishDate | 2017 |
| record_format | Figshare |
| spelling | rr-article-95040682017-08-01T00:00:00Z R&D investments and credit lines Yilmaz Guney (7199720) Ahmet Karpuz (4116058) Neslihan Ozkan (7199726) Other commerce, management, tourism and services not elsewhere classified R&D investment Credit lines Financial crises Debt types Business and Management not elsewhere classified Using data for 939 publicly listed firms from 17 European countries over the period from 2004 to 2013, we investigate the effect of used credit lines on R & D investments, controlling for other determinants of R & D investments, i.e., cash flows, cash holdings, sales growth, equity financing, and Tobin's Q. Our estimation results, based on the system-GMM method, show that used credit lines have a positive and significant impact on R & D investments. In addition, we find that this impact is more pronounced for small and young firms than for large and mature firms. These results show that firms use credit lines as part of their liquidity management tools for supporting their R & D investments. Finally, we provide evidence that European firms in bank-based countries increased their use of credit lines for financing their R & D investments during the financial crisis of 2007–2009, while the link between R & D investments and used credit lines became weaker during the European sovereign debt crisis of 2010–2013. 2017-08-01T00:00:00Z Text Journal contribution 2134/26407 https://figshare.com/articles/journal_contribution/R_D_investments_and_credit_lines/9504068 CC BY-NC-ND 4.0 |
| spellingShingle | Other commerce, management, tourism and services not elsewhere classified R&D investment Credit lines Financial crises Debt types Business and Management not elsewhere classified Yilmaz Guney Ahmet Karpuz Neslihan Ozkan R&D investments and credit lines |
| title | R&D investments and credit lines |
| title_full | R&D investments and credit lines |
| title_fullStr | R&D investments and credit lines |
| title_full_unstemmed | R&D investments and credit lines |
| title_short | R&D investments and credit lines |
| title_sort | r&d investments and credit lines |
| topic | Other commerce, management, tourism and services not elsewhere classified R&D investment Credit lines Financial crises Debt types Business and Management not elsewhere classified |
| url | https://hdl.handle.net/2134/26407 |