Intellectual Capital and Financing Decisions: Evidence from the U.S. Patent Data

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Qiao Liu; Kit Pong Wong;
  • Journal: Management Science, volume 57, issue 10 October, pages 1,861-1,878
  • Related identifiers: doi: 10.1287/mnsc.1110.1380
  • Subject: capital structure, default, intellectual capital, patent-based metrics, R&D-based metrics

This paper develops a real options model to understand two distinct roles played by intellectual capital in corporate financing decisions. Whereas limiting a firm's debt capacity because of its low liquidation value, intellectual capital enhances a firm's debt capacity ... View more
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