| 来源类型 | Working Paper |
| 规范类型 | 报告 |
| DOI | 10.3386/w20903 |
| 来源ID | Working Paper 20903 |
| Competition and R&D Financing Decisions: Theory and Evidence from the Biopharmaceutical Industry | |
| Richard T. Thakor; Andrew W. Lo | |
| 发表日期 | 2015-02-02 |
| 出版年 | 2015 |
| 语种 | 英语 |
| 摘要 | How does competition affect innovation and how it is financed in R&D-intensive firms? We study the interaction between competition, R&D investments, and the financing choices of such firms using data on biopharmaceutical firms. To motivate the empirical hypotheses, we develop a model for such firms in which their capital structure and amounts invested in R&D as well as existing assets are all determined in response to the degree of competition in the industry. The key predictions are that, as competition increases, such firms will: (1) increase R&D investment relative to investment in assets-in-place that support existing products; (2) carry more cash and maintain less net debt; and (3) experience declining betas but greater total stock return volatility due to higher idiosyncratic risk. While the focus is on the biopharmaceutical industry, the results are broadly applicable to other R&Dintensive industries as well. We provide empirical support for these predictions. In order to deal with the endogeneity issue introduced by the fact that a firm's R&D investments and the product-market competition it faces influence each other, we provide further evidence through a differences-in-differences analysis. |
| 主题 | Microeconomics ; Economics of Information ; Financial Economics ; Corporate Finance ; Industrial Organization ; Market Structure and Firm Performance ; Firm Behavior ; Industry Studies |
| URL | https://www.nber.org/papers/w20903 |
| 来源智库 | National Bureau of Economic Research (United States) |
| 引用统计 | |
| 资源类型 | 智库出版物 |
| 条目标识符 | http://119.78.100.153/handle/2XGU8XDN/578577 |
| 推荐引用方式 GB/T 7714 | Richard T. Thakor,Andrew W. Lo. Competition and R&D Financing Decisions: Theory and Evidence from the Biopharmaceutical Industry. 2015. |
| 条目包含的文件 | 条目无相关文件。 | |||||
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