Chiu Y.-C.Liang C.-W.Wang Y.2019-07-242019-07-2420121540496Xhttps://scholars.lib.ntu.edu.tw/handle/123456789/414869This paper investigates corporate financing decisions on corporate investment using cases of research and development (R&D) spending. We focus on U.S. firms with large R&D increases in 1986 to 2007, and we find that most firms with increases in R&D outlays use internal funds to finance the projects. R&D increasing firms with ex ante external financing are prone to low book-to-market ratios, indicating that firms choose external funds for their investment needs when the market timing is good. Finally, we find that the market reaction to R&D increases using internal funds is similar to R&D increases using external funds. ? 2012 M.E. Sharpe, Inc. All rights reserved.financing decisionmarket timingR&D investment[SDGs]SDG9conference paper10.2753/REE1540-496X4801S1072-s2.0-84861024929https://www.scopus.com/inward/record.uri?eid=2-s2.0-84861024929&doi=10.2753%2fREE1540-496X4801S107&partnerID=40&md5=bbe8ce86005e3203569c50e234fb7a5a