Scandinavian Working Papers in Economics
Working Paper Series in Economics and Institutions of Innovation,
Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies
No 192: Equity Financing and Innovation: is Europe different from the United States?
Gustav Martinsson ()
Additional contact information
Gustav Martinsson: CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology, Postal: CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology, SE-100 44 Stockholm, Sweden
Abstract: 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.
Keywords: Financing constraints; R&D; Stock Issues; Econometrics; Financial markets; international economics
29 pages, August 26, 2009
Full text files
cesiswp192.pdf
- Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies
- Home page for this series
Questions (including download problems) about the papers in this series should be directed to Vardan Hovsepyan ()
Report other problems with accessing this service to Sune Karlsson ().
RePEc:hhs:cesisp:0192This page generated on 2024-09-13 22:14:26.