Thi-Thanh Phan
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Debt maturity and corporate R&D investment – the empirical study of US listed firms
Banks and Bank Systems Volume 13, 2018 Issue #4 pp. 1-16
Views: 1212 Downloads: 141 TO CITE АНОТАЦІЯThis study investigates the relationships between debt maturity structure and corporation R&D investment. Using a large sample of US listed firms over the period of 1995 to 2015, it was found that the use of bank debt positively influences R&D investment, whereas the use of public debt exerts a negative impact. However, the Sarbanes-Oxley Act (SOX) mitigates the information asymmetry such that the advantages of private information from banks shrunk. As a result, public debtholders benefit more from the SOX and turn out to be positively influenced by the R&D investment after SOX. Moreover, bank debt impact on R&D spending reduces over the post-SOX. The results also find that the SOX influences the debt maturity on corporate R&D investment only for large corporations, the effects remain unchanged for small businesses.
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