We examine the impact of acquiring public versus private targets on acquirers’ long-run innovation outcomes. Our analysis shows that acquisitions of private targets are associated with an increase in innovation outcomes and innovation efficiency. We do not find an impact on innovation for public targets. These differences in innova- tion effects between private versus public targets is also reflected in announcement returns. Our results highlight the importance of private targets for innovation in the M&A market and the fact that the announcement market reaction accounts for this difference.
|Number of pages||54|
|Publication status||Unpublished - 2021|
- M&As, public target acquisitions, private target acquisitions, innovation, patent
ASJC Scopus subject areas
- Economics, Econometrics and Finance(all)