Financial Dependence and Innovation : The Case of Public versus Private Firms

@inproceedings{Acharya2015FinancialDA,
  title={Financial Dependence and Innovation : The Case of Public versus Private Firms},
  author={Viral Acharya and Zhaoxia Xu},
  year={2015}
}
In this paper, we examine the relation between innovation and a firm’s financial dependence using a sample of privately-held and publicly-traded U.S. firms. We find that public firms in external finance dependent industries spend more on R&D and generate a better patent portfolio than their private counterparts, while public firms in internal finance… CONTINUE READING