Resource title

R&D and Firm Performance in a Transition Economy

Resource image

image for OpenScout resource :: R&D and Firm Performance in a Transition Economy

Resource description

We estimate the effects of R&D on firms' credit ratings and on financial distress. The main purpose is the comparison of firms in Western Germany and Eastern Germany as a transitional economy. Innovative activity has a positive impact on firm value proxied by ratings in Western Germany, but a negative impact in Eastern Germany. We also consider future financial distress, and find that R&D in Eastern German firms leads to higher default risk, in contrast to Western Germany. There, R&D enhances future performance. This result is highly politically relevant, since the high level of subsidies present in Eastern Germany may be subject to misallocation.

Resource author

Dirk Czarnitzki, Kornelius Kraft

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/24225

Resource license

Adapt according to the presented license agreement and reference the original author.