Corporate Finance, Innovation, and Strategic Competition /
This book analyzes how corporate finance decisions influence strategic competition and innovation of firms in the product market. We consider bank loan financing and venture capital financing. Due to assymetric information, firms must sign special contracts with banks or venture capitalists. The fin...
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| Format: | eBook |
| Language: | English |
| Published: |
Berlin, Heidelberg :
Springer Berlin Heidelberg,
2003.
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| Series: | Lecture notes in economics and mathematical systems ;
522. |
| Subjects: | |
| Online Access: | Connect to the full text of this electronic book |
| Summary: | This book analyzes how corporate finance decisions influence strategic competition and innovation of firms in the product market. We consider bank loan financing and venture capital financing. Due to assymetric information, firms must sign special contracts with banks or venture capitalists. The financial contracts, in turn, determine the competitive strategies of firms in the product market. Firms compete in prices for market shares. In addition to that, firms invest in R & D in order to induce product or process innovation. We show that better access to financial resources improves a firm's market position and leads to a higher rate of innovation. Cash-rich firms may even decide to prey upon financially restricted rivals in order to prevent new market entry or to induce market exit. |
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| Item Description: | Electronic resource. |
| Physical Description: | 1 online resource (ix, 218 pages 26 illustrations) |
| ISBN: | 9783642556906 (electronic bk.) 3642556906 (electronic bk.) |
| ISSN: | 0075-8442 ; |