This paper shows evidence that the innovative SMEs use more internal finance to fund R&D investment in the existence of the asymmetric information. The innovative SMEs also use more internal finance to fund asset-counted R&D investment than the cost-counted R&D investment, because the intangible assets created by asset-counted R&D investment may act as an innovative driver that has a greater multiplier effect on the firm value. Moreover, the innovative SMEs use more internal finance to smooth R&D investment in the existence of the external financial constraints. These findings suggest a new policy implication into how internal finance can be particularly valuable for the R&D smoothing of the innovative SMEs; that is, internal finance is an important aspect of innovation policy for the innovative SMEs.
Keywords : internal finance, R&D investment, asymmetric information, financial constraints
학회소식
학회소식
[2011년 제 2차] R&D Investment and Internal Finance : Evidence from
작성자 : 관리자
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게시일 :
2011-06-03