Advertising and R&D Innovation under Debt Constraint
Combining output market with capital market and based on the capital structure industrial organization theory,how debt affects firm's advertising and R&D investment behavior along with what are the relationships between advertising and R&D innovation are studied in this paper.After theoretical and empirical analyzing,the following conclusions are achieved.Firstly,debt increases firm's advertising but inhibits R&D investment and different kinds of debts have different effects.Besides,firm's advertising and RD behavior are different between different industries and manufacturing firms invest both of them while non-manufacturing firms only perform one of them.Moreover,advertising investment is complementary with R&D investment in manufacturing firms but it is competitive with RD innovation in non-manufacturing firms.This study is valuable for the improving of capital structure industrial organization theory and helpful for firm's advertising as well as RD competition strategy.
NETL
NSTL
万方数据
维普
