| Summary: | 碩士 === 國立高雄第一科技大學 === 財務管理所 === 97 === This paper investigates the effect of R&D investment on financing decision and the moderating effect of family ownership on the R&D investment-financing decision relationship. Due to the agency problems of asset substitution and underinvestment, information asymmetry, asset specificity and financial slack, firms may tend not to assume debt for R&D activities. Additionally, family firms differ greatly from nonfamily firms in terms of values, goals and organizational structure. Generally, family firms are long-term oriented because the wealth of family members is closely tied to the firm. Family members also have strong incentives to remain control. Accordingly, family firms may prefer not to use debt to fund R&D outlays.
Using a panel data of 128 listed electronic firms during 1999-2006, the empirical results indicate a negative relationship between R&D investment and debt ratio, suggesting that firms with R&D spending may prefer equity to debt financing in order to avoid the increased costs of debt. Additionally, it is evident that the moderating effect of family ownership on the R&D investment-Financing Decision relationship is negative, suggesting that family firms may tend not to assume debt for financing R&D investment.
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