FINANCE Corporate financial policy and R and D Management

The Model 175

TABLE 6.21 R&D Equation 3SLS

1952 1953 1954 1955

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

Intercept 0.003 0.43 0.006 1.44 –0.001 –0.27 0 0.03
RDL 0.982 12.57 0.889 17.79 1.057 18.88 1.029 8.58
Size 0.174 0.96 0.101 1.01 0.155 1.77 –0.196 –1.74
PKL –0.011 –0.84 0.003 0.26 –0.001 –0.18 0.025 1.51
IS 0.03 0.82 0.037 2.21 0.007 0.47 0.146 2.91
DS 0.114 1.2 0.092 1.71 0.098 1.91 0.178 1.96
FS –0.103 –1.62 –0.247 –5.32 –0.074 –1.81 –0.519 –4.27

1956 1957 1958 1959

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

Intercept 0.006 1.04 –0.01 –1.7 0.008 0.77 –0.003 –0.66
RDL 0.763 7.27 1.013 12.57 1.031 7.24 1.14 19.02
Size 0.024 0.24 0.163 1.15 0.782 3.5 0.13 1.23
PKL 0.006 0.38 0.04 2.47 –0.015 –0.52 0.027 1.42
IS –0.053 –1.76 0.107 2.68 –0.031 –0.55 0.104 3.95
DS 0.002 0.02 –0.019 –0.31 0.513 3.28 –0.003 –0.05
FS 0.031 0.37 –0.246 –2.53 –0.621 –4.94 –0.3 –4.23

1960 1961 1962 1963

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

Intercept 0.007 1.88 –0.009 –2.32 –0.005 –1.5 0.001 0.17
RDL 0.978 27.85 0.953 20.07 1.037 24.57 1.046 10.84
Size –0.193 –3.04 0.541 1.86 0.027 0.41 0.298 1.42
PKL –0.002 –0.14 0.036 3 0.022 2.48 –0.025 –0.48
IS –0.05 –2.87 0.037 1.76 0.085 3.91 0.057 0.65
DS 0.008 0.19 –0.116 –2.17 –0.059 –1.05 –0.113 –0.7
FS 0.066 2.5 –0.063 –1.05 –0.156 –4.43 –0.016 –0.13

1964 1965 1966 1967

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

Intercept 0.006 0.81 0.016 1.88 –0.004 –0.66 –0.005 –0.83
RDL 1.058 11.79 0.962 12.59 0.926 13.91 0.913 12.95
Size –0.151 –0.91 –0.399 –1.9 0.075 0.53 0.218 1.53
PKL –0.008 –0.17 –0.031 –0.84 0.001 0.03 0.032 1.96
IS –0.104 –1.31 –0.161 –2.16 0.012 0.35 0.03 0.98
DS –0.039 –0.31 –0.016 –0.12 0.001 0.01 0.029 0.24
FS –0.03 –0.19 0.103 0.77 0.037 1.22 –0.136 –1.99

(Continued)