Cross-border M&As and innovative activity of acquiring and target firms

Arbeitspapier

This paper analyzes the effects of cross-border mergers and acquisitions (M&As) on the innovation of European firms. The results indicate a considerable increase in post-acquisition innovation in the merged entity. This is mainly driven by inventors based in the acquirer's country, while innovation in the target's country tends to decline. The asymmetry of effects between acquiring and target firms increases with pre-acquisition differences in knowledge stocks, indicating a relocation of innovative activities towards more efficient usage within multinational firms. Instrumental variable techniques as well as a propensity-score matching approach indicate that the effect of cross-border M&As on innovation is causal.

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• ISBN: 978-3-86304-157-1
• Language: Englisch

References and Relationships

• Bibliographic citation: Series: DICE Discussion Paper ; No. 158

Classification and Topics

• Classification: Wirtschaft ; Multinational Firms; International Business ; Firm Behavior: Empirical Analysis ; Mergers; Acquisitions; Restructuring; Voting; Proxy Contests; Corporate Governance ; Innovation and Invention: Processes and Incentives
• Subject: Multinational Enterprises ; Mergers and Acquisitions ; Innovation

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Stiebale, Joel
• Event: Veröffentlichung
• (who): Heinrich Heine University Düsseldorf, Düsseldorf Institute for Competition Economics (DICE)
• (where): Düsseldorf
• (when): 2014

Further information

• Handle: http://hdl.handle.net/10419/101326