Saltar al contenido principal
logo

2015 Conference

del 15 al 16 de October del 2015

Orlando, FL

Welcome to the AFS Conference 2015 Schedule App. Please use the search features to see when your session or poster has been scheduled to take place. 

Real Asset Liquidity and Firm Innovation

jueves, el 15 de octubre de 2015 a las 08:45–10:15 EDT
Scotland AB
Keywords: 5 words maximum

real asset liquidity, innovation, cost of capital, cost of equity, operating flexibility

Very short description for use in the program to help attendees understand more than a title can describe

This paper examines the effects of real asset liquidity on firm innovation. We show that firms with high liquid assets tend to invest more in research and development (R&D) and generate higher number of patents and patent citations. We further document that this effect is more pronounced among firms with less capacity to access external equity capital as well as for those with high cost of asset replacement. Overall, our findings are consistent with the hypothesis that high real asset liquidity decreases both costs of external capital and of asset replacement, encouraging firms to invest more in innovation.

Lead & Corresponding Author

Lai Van Vo, PhD, Western Connecticut State University
Job Title

Assistant Professor of Finance

Additional Authors

Danh Vinh Le, PhD, Ton Duc Thang University
Job Title
Huong T.T. Le, PhD, Louisiana State University
Job Title
Cargando…