MOTIVES FOR FORMING RESEARCH-AND-DEVELOPMENT FINANCING ORGANIZATIONS

• 成果类型: Article
• 署名作者: BEATTY, A; BERGER, PG; MAGLIOLO, J
• 署名单位: Southern Methodist University
• 刊物名称: JOURNAL OF ACCOUNTING & ECONOMICS
• ISSN/ISSBN: 0165-4101
• DOI: 10.1016/0165-4101(94)00390-Q
• 发表日期: 1995
• 关键词: credit

摘要

We study the decision to fund R&D through a separate financing organization (an 'RDFO') that takes the form of either a limited partnership or a corporation. The RDFO offers tax and financial reporting benefits. As a form of external funding, it also creates moral hazard and adverse selection problems (information costs). Using convertible debt as a comparative form of external funding, we find that debt-related (but not equity-related) financial reporting benefits affect the decision to form RDFOs, the evidence is mixed on whether taxes influence the formation decision, and the information costs of RDFOs restrict their use.