Business, Management and Accounting
2 years ago

High-Tech Companies Thrive Without Debt, Unveiling Hidden Growth Secrets.

Foresight-Russia
The New Strategy of High-Tech Companies – Hidden Sources of Growth
Maria Kokoreva, Anastasia Stepanova, Kirill Povkh

Paper Summary

Related papers

Economics, Econometrics and Finance
a year ago

Firms with low debt more likely to fund R&D projects.

R&D Subsidies
Corporate Governance
Real Options
2 views
Business, Management and Accounting
2 years ago

High-Tech Companies Thrive Without Debt, Unveiling Hidden Growth Secrets.

Venture Capital
Real Options
Corporate Governance
1 view
Business, Management and Accounting
2 years ago

Tax Cuts Lead to $84.8 Billion Decrease in Corporate Debt Levels

Tax Avoidance
Earnings Management
Corporate Governance

High-tech companies in industries like software, hardware, and pharmaceuticals are choosing not to take on debt, even though it may seem like a good idea for tax benefits. A study looked at US companies over 12 years and found that high-tech firms avoid debt because they are financially constrained and want to keep their options open. They also found that high-tech companies may avoid debt to prevent managers from becoming too powerful. This information can help company leaders and investors understand why high-tech firms choose to stay debt-free.