Research and development investment and financing constraints: The case of Japan
جاري التحميل...
التاريخ
المؤلفين
عنوان الدورية
ردمد الدورية
عنوان المجلد
الناشر
Research in International Business and Finance
خلاصة
The Japanese environment offers an opportunity to explore the relationship between the organizational structure of firms and their performance by making a distinction between the firms affiliated to an industrial group, namely the keiretsu, and independent businesses.
The goal of this article is to respond to the two following questions: how do firms belonging to the same country (Japan), with the same investment opportunities, face more constraints than their counterparts, even though they use the same financial instruments to invest and ensure their growth? Does being an owner of a part of a company affiliated to the Japanese keiretsu group impact on the nature of research and development (R&D) investment or on tangible/fixed assets?
To respond to these questions we used a bivariate regression model with two endogenous variables: investment in R&D and investment in tangible assets, and explained by the same exogenous factors. The results show, on the one hand, that investments in tangible assets are more sensitive to cash flow than the costs of investment in R&D. On the other hand, group-affiliated firms have relatively easier access to funds compared to independent firms because of their ability to use internal capital market benefits and tap more financial resources.