{"id":592,"date":"2018-08-01T15:28:49","date_gmt":"2018-08-01T15:28:49","guid":{"rendered":"http:\/\/www.henrylahr.com\/?p=592"},"modified":"2024-05-21T08:15:32","modified_gmt":"2024-05-21T08:15:32","slug":"the-pecking-order-of-innovation-finance","status":"publish","type":"post","link":"https:\/\/www.henrylahr.com\/?p=592","title":{"rendered":"The Pecking Order of Innovation Finance"},"content":{"rendered":"<div class=\"entry-content clearfix\">\n<p>with Andrea Mina; available at <a href=\"https:\/\/ssrn.com\/abstract=3224441\">SSRN<\/a>.<\/p>\n<p><b>Abstract:&nbsp;<\/b>This paper examines the relationship between firms\u2019 <span class=\"searchTermsHighlighted\">innovation<\/span> activities and the hierarchy of financing behaviours. We analyse the role of <span class=\"searchTermsHighlighted\">innovation<\/span> inputs (R&amp;D), intermediate outputs (patents) and outcomes (product and process innovations) as sources of information asymmetry in financing decisions. Our focus on mainly unlisted companies allows us to study the effects of information asymmetries in the context where they are most severe, that is, among small and medium sized firms. We identify the effect of <span class=\"searchTermsHighlighted\">innovation<\/span>, alongside the size of the firm, its age and its human capital, on the order of directly observed external capital allocations. Our results show that <span class=\"searchTermsHighlighted\">innovation<\/span> is negatively associated with the standard <span class=\"searchTermsHighlighted\">pecking<\/span> order of increasing agency costs, and that the more uncertain the <span class=\"searchTermsHighlighted\">innovation<\/span> signal, the stronger its effect on the <span class=\"searchTermsHighlighted\">pecking<\/span> order.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>with Andrea Mina; available at SSRN. Abstract:&nbsp;This paper examines the relationship between firms\u2019 innovation activities and the hierarchy of financing behaviours. We analyse the role of innovation inputs (R&amp;D), intermediate outputs (patents) and outcomes (product and process innovations) as sources of information asymmetry in financing decisions. Our focus on mainly unlisted companies allows us to &hellip; <\/p>\n<p><a class=\"more-link btn\" href=\"https:\/\/www.henrylahr.com\/?p=592\">Continue reading<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-592","post","type-post","status-publish","format-standard","hentry","category-papers","nodate","item-wrap"],"_links":{"self":[{"href":"https:\/\/www.henrylahr.com\/index.php?rest_route=\/wp\/v2\/posts\/592","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.henrylahr.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.henrylahr.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.henrylahr.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.henrylahr.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=592"}],"version-history":[{"count":3,"href":"https:\/\/www.henrylahr.com\/index.php?rest_route=\/wp\/v2\/posts\/592\/revisions"}],"predecessor-version":[{"id":617,"href":"https:\/\/www.henrylahr.com\/index.php?rest_route=\/wp\/v2\/posts\/592\/revisions\/617"}],"wp:attachment":[{"href":"https:\/\/www.henrylahr.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=592"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.henrylahr.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=592"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.henrylahr.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=592"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}