R&d Investment and Financial Contracting in Spanish Manufacturig Firms *


This paper presents a model in which a firm with a degree of R&D specialization raises external funds to develop a two-period project that involves some non-verifiable returns (R&D-type of project). Taking into account a possible opportunistic behavior by the manager, we find out that the optimal firm's debt equity ratio is negatively related to the firm's… (More)


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