Financial markets and R&D investments

Arbeitspapier

This paper introduces a discrete-time intertemporal investment model in which the flow of profits affects the risk premium on the cost of finance, and, as a consequence, the rate of discount of future profits. While public investments, according to a consolidated literature, constitute the main bulk of innovation policies, this model is used to comment and interpret the potential use of another, secondary, public policy, consisting of tax incentives for firms performing R&D expenditures and issuing securities in the stock market. Linking public policies for innovation to the stock market might help to reduce the problems of discretionality and the monitoring of public expenditure used to finance R&D and technical innovation.

Object Details

• ISBN: 9291907588
• Language: Englisch

References and Relationships

• Bibliographic citation: Series: WIDER Research Paper ; No. 2005/70

Classification and Topics

• Classification: Wirtschaft ; Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
• Subject: investment ; intertemporal firm choice ; capital structure ; financing policy ; Betriebliche Forschung ; Betriebliche Investitionspolitik

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Mazzoli, Marco
• Event: Veröffentlichung
• (who): The United Nations University World Institute for Development Economics Research (UNU-WIDER)
• (where): Helsinki
• (when): 2005

Further information

• Handle: http://hdl.handle.net/10419/63486
• Last update: 10.03.2025, 11:46 AM CET