Do equity financing cycles matter? evidence from biotechnology alliances

• 成果类型: Article
• 署名作者: Lerner, J; Shane, H; Tsai, A
• 署名单位: Harvard University; National Bureau of Economic Research; University System of Ohio; Case Western Reserve University
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/S0304-405X(02)00256-8
• 发表日期: 2003
• 页码: 411-446
• 关键词: strategic alliances; product market-financial market interactions; initial public offerings; venture capital

摘要

In periods characterized by diminished public market financing, small biotechnology firms appear to be more likely to fund R&D through alliances with major corporations rather than with internal funds (raised through the capital markets). We consider 200 alliance agreements entered into by biotechnology firms between 1980 and 1995. Agreements signed during periods of limited external equity financing are more likely to assign the bulk of the control to the larger corporate partner, and are significantly less successful than other alliances. These agreements are also disproportionately likely to be renegotiated if financial market conditions subsequently improve. (C) 2002 Elsevier Science B.V. All rights reserved.