IP protection and ownership in cross-border acquisitions

Ofra Bazel-Shoham; Sang Mook Lee; Mohammad Faisal Ahammad; Shlomo Y. Tarba; Ilan Alon

doi:10.1016/j.ibusrev.2023.102101

IP protection and ownership in cross-border acquisitions

Ofra Bazel-Shoham, Sang Mook Lee, Mohammad Faisal Ahammad, Shlomo Y. Tarba^*, Ilan Alon

^*Corresponding author for this work

Research output: Contribution to journal › Article › peer-review

Abstract

We use the institutional theory to examine the impact of intellectual property protection on US multinational corporations (MNCs) ownership levels of their foreign acquisitions. Based on a sample of 7238 completed international M&A deals made by US MNCs from 1998 to 2017, we found that multinationals protect their intellectual property through more ownership when they are technologically intensive and invest more when IP protection is strong. However, IP protection negatively moderates the need for more ownership for technologically-intensive multinational corporations. Our results are robust to a battery of empirical tests, including a unique instrumental variable approach. This leads us to claim that our results are not merely correlated but are causal.

Original language	English
Article number	102101
Number of pages	18
Journal	International Business Review
Volume	32
Issue number	3
Early online date	27 Jan 2023
DOIs	https://doi.org/10.1016/j.ibusrev.2023.102101
Publication status	Published - Jun 2023

Bibliographical note

Publisher Copyright:
© 2023 Elsevier Ltd

Keywords

Institutional theory
IP protection
M&A
Technological intensity

ASJC Scopus subject areas

Business and International Management
Finance
Strategy and Management
Marketing

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10.1016/j.ibusrev.2023.102101Licence: None: All rights reserved

Cite this

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IP protection and ownership in cross-border acquisitions

Abstract

Bibliographical note

Keywords

ASJC Scopus subject areas

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