Financial Constraints and the Structure of the Firm’s Investment: An Application to the Scientific R&D Industry from the Largest EU Countries

Claudiu Albulescu (), Serban Miclea (), Matei Tamasila () and Mihaela Vartolomei ()
Additional contact information
Serban Miclea: University Politehnica Timisoara
Matei Tamasila: University Politehnica Timisoara
Mihaela Vartolomei: University Politehnica Timisoara

Chapter Chapter 18 in Innovation in Sustainable Management and Entrepreneurship, 2020, pp 245-255 from Springer

Abstract: Abstract This work assesses the influence of financial constraints on firms’ investment structure. Previous works state that financially constrained firms chose to invest more in tangible assets, in the detriment of intangible assets. However, none of these researches investigated the structure of investment of firms from scientific R&D industry. Therefore, we add to the exiting literature, and we test the impact of leverage, liquidity, and profitability on the R&D firms’ investment structure. We use data at firm level from 2007 to 2014, for 269 companies, located in France (163), Germany (67), and the UK (39), drawing a comparison between these countries. Our GMM analysis shows no significant impact of leverage and liquidity on the structure of investment. For Germany and UK, an increased profitability allows firms to invest more in long-term, intangible assets. These findings remain the same under different difference- and system-GMM specifications.

Keywords: Capital structure; Firm investment; Financial constraints; R&D firms (search for similar items in EconPapers)
Date: 2020
References: Add references at CitEc
Citations: View citations in EconPapers (1)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
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:spr:prbchp:978-3-030-44711-3_18

Ordering information: This item can be ordered from
http://www.springer.com/9783030447113

DOI: 10.1007/978-3-030-44711-3_18

Access Statistics for this chapter

More chapters in Springer Proceedings in Business and Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().