This paper analyses the impact of subsidies for the promotion of Italian joint ventures (JVs) aimed at LDC and transition economies. The empirical analysis is carried out on a unique dataset of 172 JVs interviewed during 1998 by means of a closed-answer qualitative-quantitative questionnaire....

Innovating firms use their finance structure as a signalling device to attract outside investors. This argument is developed in standard static principal-agent models dealing with New Technology Based Firms (NTBFs) and large firms undertaking an aggressive R&D strategy. In the case of NTBFs, the...