Managing innovation: The role of collateral*

• 成果类型: Article
• 署名作者: Mao, Yifei
• 署名单位: Cornell University
• 刊物名称: JOURNAL OF ACCOUNTING & ECONOMICS
• ISSN/ISSBN: 0165-4101
• DOI: 10.1016/j.jacceco.2021.101419
• 发表日期: 2021
• 关键词: research-and-development; AGENCY COSTS; technological-innovation; capital structure; DEBT CAPACITY; corporate; MARKET; INVESTMENT; COMPETITION; FIRMS

摘要

Using exogenous variations in the market value of corporate real estate, this paper investigates whether appreciation of corporate collateral value facilitates innovation. My baseline finding shows that real estate appreciation leads to an increase in innovation quantity as measured by patent productions and in innovation quality as measured by citations per patent, especially when firms are credit constrained. To uncover the underlying channel, I show that real estate appreciation allows additional secured borrowing, which enables firms to increase their innovative investments including internal research and development (R&D), the acquisition of innovative target firms, and corporate venture capital (CVC). Moreover, following real estate appreciation, firms change the trajectory of innovation, as reflected in the patent-filing industries and in the characteristics of acquisitions and CVC investment deals. Finally, I provide evidence that firms that innovate more in response to real estate appreciation tend to have better future financial health and accounting profitability. (c) 2021 Elsevier B.V. All rights reserved.