Debt, Ownership Structure, And R&D Investment: Evidence From Japan
Financial factors and ownership structure are both part of the determinants of corporate R&D investment. Considering listed firms in the R&D intensive industries during the 2000s, this paper examines whether financial factors and ownership structure explain R&D investment in Japan. Following the methodology of Brown et al. (2009), which extends the dynamic investment model of Bond and Maghir (1994) to R&D investment, the authors find that only small, young firms mainly listed on new emerging markets face financial constraints. They also find that large firms finance R&D investment partly from debt.