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 |
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Article number | 102101 |
Number of pages | 18 |
Journal | International Business Review |
Volume | 32 |
Issue number | 3 |
Early online date | 27 Jan 2023 |
DOIs | |
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