Does R&D intensity influence leverage? Evidence from Indian firm-level data

Saibal Ghosh

MPRA Paper from University Library of Munich, Germany

Abstract: The paper examines the association between corporate leverage and their investment in R&D. Towards this end, it develops certain testable propositions. These propositions are tested using a dataset of manufacturing firms in India covering the period 1995-2005. The estimates support the fact that firms which make high efforts on R&D investments exhibit lower leverage ratios. Additionally, the estimates reveal that the dampening effect of R&D-intensity on leverage is the highest for foreign private firms. For state-owned firms however, R&D activity appears to be positively associated with leverage.

Keywords: R&D intensity; leverage; Tobit model; India (search for similar items in EconPapers)
JEL-codes: O32 (search for similar items in EconPapers)
Date: 2012-03-17
New Economics Papers: this item is included in nep-cfn, nep-ino and nep-sbm
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Published in Journal of International Entrepreneurship 2.10(2012): pp. 158-175

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/38945/1/MPRA_paper_38945.pdf original version (application/pdf)

Related works:
Journal Article: Does R&D intensity influence leverage? Evidence from Indian firm-level data (2012)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:38945

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter (winter@lmu.de).