FINANCE Corporate financial policy and R and D Management

The Model 123

TABLE 6.8 Investment Equation 3SLS

1952 1953 1954 1955

Variable Coeff T-Stat Coeff T-Stat Coeff T-Stat Coeff T-Stat

Intercept 0.201 4.19 0.074 1.95 0.308 6.48 0.682 3.18
PKL 0.022 0.65 0.004 0.14 –0.035 –0.68 0.297 2.01
CAK –0.265 –4.92 –0.082 –1.67 –0.444 –6.22 –0.692 –3.17
D2sales 0 –99 –0.02 –0.91 0.098 1.83 0.588 1.52
DS 0.839 1.06 –2.612 –5.5 2.857 2.89 –1.643 –1.03
FS –1.168 –0.92 3.293 4.22 –2.693 –3.72 –7.923 –1.89

1956 1957 1958 1959

Variable Coeff T-Stat Coeff T-Stat Coeff T-Stat Coeff T-Stat

Intercept 0.595 3.7 0.05 0.97 0.222 7.58 0.22 6.12
PKL 0.332 1.66 –0.33 –1.81 –0.001 –0.02 0.079 1.45
CAK –0.751 –3.14 –0.092 –1.16 –0.259 –7.43 –0.282 –7.1
D2sales 0.443 1.17 –0.288 –2.24 0.013 0.31 0.026 0.33
DS 4.86 1.71 0.122 0.12 1.006 1.45 –1.543 –3.2
FS –10.894 –2.14 5.211 3.65 –1.739 –3.72 0.124 0.16

1960 1961 1962 1963

Variable Coeff T-Stat Coeff T-Stat Coeff T-Stat Coeff T-Stat

Intercept 0.266 4.15 0.207 2.52 0.224 2.92 0.031 0.59
PKL 0.108 0.75 0.064 0.3 –0.109 –0.83 –0.23 –1.43
CAK –0.325 –3.42 –0.054 –0.49 –0.379 –4.04 –0.1 –0.83
D2sales 0.108 0.9 0.057 0.22 –0.122 –0.99 –0.798 –3.18
DS –4.877 –3.33 –8.973 –4.35 –0.296 –0.21 –6.319 –2.33
FS 2.045 1.78 4.843 2.4 2.263 2.34 13.642 6.1

1964 1965 1966 1967

Variable Coeff T-Stat Coeff T-Stat Coeff T-Stat Coeff T-Stat

Intercept –0.039 –0.6 0.101 0.75 0.243 8.19 0.238 12.75
PKL –1.616 –3.11 0.065 0.41 0.007 0.11 0.047 0.98
CAK 0.384 1.8 0.031 0.14 –0.255 –5.37 –0.303 –10.79
D2sales –2.313 –3.63 –0.26 –0.59 0.008 0.07 0.005 0.13
DS –2.386 –0.5 –11.267 –2.73 –4.518 –5.55 –2.996 –8.88
FS 17.032 4.27 7.02 2.71 1.928 2.41 0.831 2

(Continued)