 How R&D investment affects bondholder wealth?Jiameng Ma, Fenglong Xiao, Yue Qiu and Zongyu Xu Asia-Pacific Journal of Accounting & Economics, 2022, vol. 29, issue 2, 304-328 Abstract: Purpose: This paper focuses on creditors as a key group of stakeholders in corporate finance and governance, and develops a contingency perspective to understand how corporate investment in R&D activities affects creditor value through influencing a firm’s creditworthiness among investors.Design: This study is based on a sample of publicly traded firms in the US. during 1994–2017. Various regression models are applied to analyze the archival data.Findings: This paper shows that a firm’s creditworthiness increases with R&D intensity initially but falls when R&D intensity keeps increasing and surpasses a certain threshold. Moreover, such curvilinear relationship is less pronounced when the firm is of low disclosure quality and is less concerned with financial distress.Originality: Although prior research has intensively studied how corporate R&D activities affect shareholders, less attention has been paid to the impact of corporate R&D on other stakeholders. This study fills this void by examining how R&D activities affect creditors. Date: 2022 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:taf:raaexx:v:29:y:2022:i:2:p:304-328 Ordering information: This journal article can be ordered from DOI: 10.1080/16081625.2020.1726187 Access Statistics for this article Asia-Pacific Journal of Accounting & Economics is currently edited by Yin-Wong Cheung, Hong Hwang, Jeong-Bon Kim, Shu-Hsing Li and Suresh Radhakrishnan More articles in Asia-Pacific Journal of Accounting & Economics from Taylor & Francis Journals |
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