Determinants of research and development on the alternative investment market (AIM)

Alkhataybeh, Ahmad Abdallah (2018). Determinants of research and development on the alternative investment market (AIM). University of Birmingham. Ph.D.

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This doctoral thesis investigates the incentives that affect the decisions of firms to undertake R&D investment and examining the impact of financial constraints on the levels of R&D expenditure of AIM-listed firms in the UK. The thesis comprises six chapters. The first chapter provides an introduction to the research, followed by an overview of the Alternative Investment Market in Chapter 2. Chapter 3 investigates the incentives that influence a firm’s decision to carry out R&D investment. The key empirical findings from a dynamic logistic regression suggest that large sized firms are better at generating innovative activities, that young firms tend to be more likely to innovate, that competitive markets are better at stimulating innovative activities, and that corporate income tax rates have a positive impact on this probability. Chapter 4 explores the impact of financing constraints on the levels of R&D expenditure. Using a system GMM estimator, the empirical findings suggest that working capital buffers R&D levels from transitory financial shocks, thus avoiding the high adjustments costs associated with any change in levels of R&D investment. Chapter 5 investigates the impact of the proceeds from the disposal of fixed assets on R&D expenditure. In contrast to prior literature, the main findings of this chapter suggest that there is a negative association between R&D expenditure and the cash raised from voluntary asset sales, indicating severe binding financing constraints. Practical implementations, promising ideas for future research, and the main findings of this research are summarized in the concluding chapter of the thesis.

Type of Work: Thesis (Doctorates > Ph.D.)
Award Type: Doctorates > Ph.D.
College/Faculty: Colleges (2008 onwards) > College of Social Sciences
School or Department: Birmingham Business School, Department of Finance
Funders: None/not applicable
Subjects: H Social Sciences > HG Finance


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