The market value spillovers of technological acquisitions: Evidence from patent-text analysis

• 成果类型: Article
• 署名作者: Testoni, Marco
• 署名单位: Tilburg University
• 刊物名称: STRATEGIC MANAGEMENT JOURNAL
• ISSN/ISSBN: 0143-2095
• DOI: 10.1002/smj.3355
• 发表日期: 2022
• 页码: 964-985
• 关键词: ABNORMAL RETURNS; market value spillovers; Mergers and Acquisitions; resource-based view; technological signaling

摘要

Research Summary The resource-based view claims that bundles of resources are the key determinants of a firm's value. Yet, market value spillovers stemming from firms' resource bases have received scarce attention in the literature. This article provides evidence of such spillovers in the context of technological acquisitions. I hypothesize that acquisitions act as signals, revealing to investors that the acquired technologies are more valuable than initially expected. These signals should affect firms owning similar technological resources. Measuring technological similarity with the text similarity of firms' patent portfolios, I find that the announcement of an acquisition brings a positive revaluation of firms with technological resources like those of the target. These spillovers also reach firms with a product market focus different from those of the merging firms. Managerial Summary Technological resources are key strategic resources that significantly contribute to firms' valuations. These resources are often acquired through corporate acquisitions. This study explores whether acquisitions affect the valuation of technological resources of other companies not involved in the transaction. The results show that a firm that owns patents similar to the company being acquired experience positive stock market returns at the acquisition announcement, which suggests that the deal signals to investors that the acquired resources are more valuable than initially expected. This effect holds regardless of whether the firm belongs to the same industry as the target or the acquirer. These spillovers change the market value of technological resources and are likely to affect the gains from later acquisitions or divestures of similar resources.