R&D and the Incentives from Merger and Acquisition Activity

• 成果类型: Article
• 署名作者: Phillips, Gordon M.; Zhdanov, Alexei
• 署名单位: University of Southern California; National Bureau of Economic Research; University of Lausanne
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhs109
• 发表日期: 2013
• 页码: 34
• 关键词: market; corporate; COMPETITION; INNOVATION; EFFICIENCY; valuation; takeover; IMPACT; real

摘要

We provide a model and empirical tests showing how an active acquisition market affects firm incentives to innovate and conduct R&D. Our model shows that small firms optimally may decide to innovate more when they can sell out to larger firms. Large firms may find it disadvantageous to engage in an R&D race with small firms, as they can obtain access to innovation through acquisition. Our model and evidence also show that the R&D responsiveness of firms increases with demand, competition, and industry merger and acquisition activity. All of these effects are stronger for smaller firms than for larger firms.