Young innovative firms, investment-cash flow sensitivities and technological misallocation

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dc.audiencePolicymakerseng
dc.audienceResearcherseng
dc.audienceStudentseng
dc.audienceTeacherseng
dc.coverage.sucursalBogotáspa
dc.creatorValencia-Arana, Oscar Mauricio
dc.creatorGómez-González, José Eduardo
dc.creatorGarcía-Suaza, Andrés Felipe
dc.date.accessioned2017-06-12T08:30:10Zeng
dc.date.available2017-06-12T08:30:10Zspa
dc.date.created2017-06-12spa
dc.date.issued2017-06-12eng
dc.description.abstractCan technological misallocation generate financial frictions? We build a theoretical model with testable implications, in which the misallocation between R&D and production activities generates borrowing constraints. The investor offers the innovator a rent that is contingent to the success of its project in order to make them exert an incentive-compatible effort level. However, this rent distorts the allocation of effort between activities. Specifically, it leads to a suboptimal level of effort impulsing a reallocation of resources from production to R&D. Consequently, the investor cannot appropriate the surplus resulting from innovation. This distortion increases the cost of external financing for firms that have large amount of intangible assets. Using Compustat data for manufacturing firms in the United States between 1982 and 2007, we show that cash-flow sensitivities are positive and increasing in firms with high R&D intensities.eng
dc.format.extent20 páginas : tablasspa
dc.format.mimetypePDFspa
dc.identifier.handlehttps://hdl.handle.net/20.500.12134/6317spa
dc.identifier.urihttps://repositorio.banrep.gov.co/handle/20.500.12134/6317spa
dc.language.isoengeng
dc.publisherBanco de la República de Colombiaspa
dc.relation.doihttps://doi.org/10.32468/be.1004spa
dc.relation.ispartofDocumentos de trabajospa
dc.relation.ispartofseriesBorradores de Economíaspa
dc.relation.isversionofBorradores de Economía; No. 1004spa
dc.relation.numberBorrador 1004spa
dc.relation.repechttps://ideas.repec.org/p/bdr/borrec/1004.htmlspa
dc.rights.accessRightsOpen Accesseng
dc.rights.ccAtribucion-NoComercial-CompartirIgual CC BY-NC-SA 4.0eng
dc.rights.disclaimerLas opiniones contenidas en el presente documento son responsabilidad exclusiva de los autores y no comprometen al Banco de la República ni a su Junta Directiva.spa
dc.rights.spaAcceso abiertospa
dc.rights.urihttps://creativecommons.org/licenses/by-nc-sa/4.0/eng
dc.source.bibliographicCitationAcharya, V. V., Almeida, H., and Campello, M. (2007). Is cash negative debt? a hedging perspective on corporate financial policies. Journal of Financial Intermediation, 16(4):515–554.eng
dc.source.bibliographicCitationAlmeida, H. and Campello, M. (2007). Financial constraints, asset tangibility, and corporate investment. Review of Financial Studies, 20(5):1429–1460.eng
dc.source.bibliographicCitationAlmeida, H., Campello, M., and Weisbach, M. S. (2004). The cash flow sensitivity of cash. The Journal of Finance, 59(4):1777–1804.eng
dc.source.handleRepecRePEc:bdr:borrec:1004spa
dc.subjectRiesgo moralspa
dc.subjectRestricciones de crédito y mala asignación tecnológicaeng
dc.subject.jelD86 - Economics of Contract: Theoryeng
dc.subject.jelO33 - Technological Change: Choices and Consequences; Diffusion Processeseng
dc.subject.jelG11 - Portfolio Choice; Investment Decisionseng
dc.subject.jelspaG11 - Selección de cartera; Decisiones de inversiónspa
dc.subject.jelspaD86 - Economía de los contratos: teoríaspa
dc.subject.jelspaO33 - Cambio tecnológico: opciones y consecuencias; Difusiónspa
dc.subject.keywordMoral hazardeng
dc.subject.keywordEndogenous borrowing constraints and technological misallocationeng
dc.subject.lembCrédito -- Flujo de efectivo -- Estados Unidos -- 1982-2007spa
dc.subject.lembInversiones -- Toma de decisiones -- Erroresspa
dc.subject.lembInnovaciones empresariales -- Toma de decisiones -- Erroresspa
dc.subject.lembRiesgo (Economía)spa
dc.titleYoung innovative firms, investment-cash flow sensitivities and technological misallocationeng
dc.typeWorking Papereng
dc.type.hasversionPublished Versioneng
dc.type.spaDocumentos de trabajospa

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