Equity Financing and Innovation: Is Europe Different from the United States?
2009 (English)Report (Other academic)
During the mid and late 1990s young, high-tech firms in the U.S. experienced a supply shift in both internal and external equity fueling a finance driven boom in corporate R&D. I estimate dynamic R&D regression models for high-tech firms, separately for the U.K. and Continental Europe, and find significant cash flow effects for newly listed firms in both samples, but only the new, high-tech firms in the U.K. experienced a supply shift in external equity as well. The findings of this paper suggest a channel through which market based financial systems outperform the bank based economies of Continental Europe.
Place, publisher, year, edition, pages
Stockholm: KTH Royal Institute of Technology, 2009. , 29 p.
CESIS Working Paper Series in Economics and Institutions of Innovation, 192
Financing constraints, R&D, Stock Issues, Econometrics, Financial markets, international economics
IdentifiersURN: urn:nbn:se:kth:diva-70068OAI: oai:DiVA.org:kth-70068DiVA: diva2:485827
QC 201202102012-02-102012-01-302012-02-10Bibliographically approved