Do Intangibles Resources Matter? A Boundary Condition of Capital Structure on Innovation Capability
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Abstract
Objective: the objective of this study was to analyze the effect of capital structure on the relationship between intangible resources and innovation capability. Methods: the hypotheses were tested using a panel dataset of 487 US companies listed on the S&P index from 2015 to 2022, employing fixed-effects regression models. Results: the results indicate that three intangible resources — accounting intangibility, marketing investments, and market-to-book — positively influence innovation capability. However, the effects of accounting intangibility and market-to-book on innovation capability diminish when firms rely primarily on debt financing, as opposed to equity issuance (i.e., the moderator). Conclusions: the findings highlight that different types of intangible resources contribute to innovation capability and underscore the role of capital structure in shaping management practices aimed at achieving competitive advantages and long-term corporate sustainability.
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