Corporate Innovations and Mergers and Acquisitions

JAN BENA; Kai Li

doi:10.1111/jofi.12059

journal article Sep 12, 2014

Corporate Innovations and Mergers and Acquisitions

JAN BENA Kai Li

The Journal of Finance Vol. 69 No. 5 pp. 1923-1960 · Wiley

View at Publisher Save 10.1111/jofi.12059

Abstract

ABSTRACTUsing a large and unique patent‐merger data set over the period 1984 to 2006, we show that companies with large patent portfolios and low R&D expenses are acquirers, while companies with high R&D expenses and slow growth in patent output are targets. Further, technological overlap between firm pairs has a positive effect on transaction incidence, and this effect is reduced for firm pairs that overlap in product markets. We also show that acquirers with prior technological linkage to their target firms produce more patents afterwards. We conclude that synergies obtained from combining innovation capabilities are important drivers of acquisitions.

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Metrics

740

Citations

46

References

Details

Published: Sep 12, 2014
Vol/Issue: 69(5)
Pages: 1923-1960
License: View

Authors

GFZ Helmholtz Centre for Geosciences

Funding

Social Sciences and Humanities Research Council of Canada

Cite This Article

JAN BENA, Kai Li (2014). Corporate Innovations and Mergers and Acquisitions. The Journal of Finance, 69(5), 1923-1960. https://doi.org/10.1111/jofi.12059

Corporate Innovations and Mergers and Acquisitions

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