Czarnitzki, Dirk (contributor); Kraft, Kornelius (contributor) - 2006
We estimate the effects of R&D on firms' credit ratings and on financial distress. The main purpose is the comparison … financial distress, and find that R&D in Eastern German firms leads to higher default risk, in contrast to Western Germany …. There, R&D enhances future performance. This result is highly politically relevant, since the high level of subsidies …