TY  - JOUR
ID  - discovery17751
SN  - 1542-4766
N1  - © 2004 The MIT Press
JF  - Journal of the European Economic Association
EP  - 288
AV  - public
N2  - We use data on publicly traded U.K. firms to investigate whether financing choices differ systematically with R&D intensity. As well as looking at a balance sheet measure of the debt/assets ratio, we also consider the probability of raising finance by issuing new equity, and the shares of bank debt and secured debt in total debt. We find a nonlinear relationship with the debt/assets ratio: firms that report positive but low R&D use more debt finance than firms that report no R&D, but the use of debt finance falls with R&D intensity among those firms that report R&D. We find a simpler relationship with the probability of issuing new equity: Firms that report R&D are more likely to raise funds by issuing shares than firms that report no R&D, and this probability increases with R&D intensity. The shares of bank debt and secured debt in total debt are both lower for firms that report R&D compared to those that do not, and tend to fall as R&D intensity rises. We discuss possible explanations for these patterns.
VL  - 2
UR  - http://dx.doi.org/10.1162/154247604323067989
SP  - 277
TI  - Technology and financial structure: are innovative firms different?
KW  - Finance
KW  -  financing
KW  -  firm
KW  -  R&D
KW  -  shares
KW  -  technology
IS  - 2-3
A1  - Aghion, P.
A1  - Bond, S.
A1  - Klemm, A.
A1  - Marinescu, I.
Y1  - 2004/04//
ER  -