The study looked at how a company's debt levels affect its ability to fund research and development (R&D) projects. Companies tend to adjust their debt levels to meet a target amount. The research found that companies with less debt than their target are more likely to issue debt to fund R&D compared to those with more debt than their target. This trend is especially true for smaller companies and those that do not pay dividends. Companies with less debt than their target also tend to use a larger portion of the money raised from debt issuance to fund R&D projects.