Entrepreneurial human capital, complementary assets, and takeover probability

Arbeitspapier

Although acquisitions of high tech entrepreneurial firms are of great popularity, the limited empirical evidence shows that these acquisitions often lead to dismal results in that a large number of acquired inventors leave the company after the acquisition and those that remain exhibit poor performance. This study tries to explain this phenomenon and adds additional empirical results and explanations which are based on the seminal work of Grossman, Hart, and Moore. Using a hand collected dataset of all German IPOs from 1997 until 2006 we show that the takeover probability of young and high tech firms significantly decreases with the amount of patents as a measure of intangible and complementary assets owned by the owner-manager.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: UO Working Paper Series ; No. 03-10

Classification and Topics

• Classification: Management ; Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill ; Organizational Behavior; Transaction Costs; Property Rights ; Mergers; Acquisitions; Restructuring; Voting; Proxy Contests; Corporate Governance
• Subject: ownership structure ; property rights ; mergers & acquisitions

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Braun, Thorsten V. ; Krispin, Sebastian ; Lehmann, Erik E.
• Event: Veröffentlichung
• (who): University of Augsburg, Chair of Management and Organization
• (where): Augsburg
• (when): 2010

Further information

• DOI: doi:10.2139/ssrn.1358223
• Handle: http://hdl.handle.net/10419/57889
• Last update: 2025-03-10T11:44:23+0100