R&D Subsidies and Firms’ Cost of Debt
Hanna Hottenrott () and
Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking from Verein für Socialpolitik / German Economic Association
Information asymmetry and outcome uncertainty increase the cost of debt for R&D. This study shows that recipients of public R&D grants face lower costs of debt. Immediate effects suggest that quality certification explains this observation. For younger ventures certification is accompanied by liquidity effects. Short-term effects stem from grants for research. In addition, longer-term liquidity effects point to grants facilitating young firms’ investments in R&D that advance project maturity.
JEL-codes: O31 O38 L26 G30 (search for similar items in EconPapers)
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Working Paper: R&D subsidies and firms’ cost of debt (2015)
Working Paper: R&D subsidies and firms' cost of debt (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:vfsc17:168093
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