Financing technological innovation in global capital markets. 2009-2016
DOI:
https://doi.org/10.18041/libemp.2017.v14n1.27103Keywords:
Cobb-Douglas, technology, equity, debt, productivity, econometricsAbstract
Cobb-Douglas production function regressions are constructed with a financial focus where machine and labor capital are replaced by capital stock and total debt in order to measure the productivity (impact on sales) of the two financing mechanisms. Information is taken from the Damodaran-Bloomberg database: 40,906 firms whose stocks and bonds are traded on all exchanges in the world, grouped in 97 manufacturing subsectors and services, belonging to nine countries or areas of countries, for the period 2.009-2.014 and subsequent revision for 2.011-2.016. It is concluded that for most sectors worldwide, regardless of the technological level, share capital is more productive than credit and therefore the issuance of shares and other type of capitalization should be promoted.
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