Through overviewing the merger waves during the last century, we know the latest two waves result mainly from technological innovation. With the presence of M&A market, acquirers are able to gain innovation capacities by taking over innovative targets. Innovation is considered to be a source of synergies and a major motive for M&A decision. Therefore, my research focuses on whether acquisitions for innovation create value for investors in short-term and long-term perspective.
By using various innovation measures, I employ event study and calendar time portfolio to examine the significance of abnormal returns. I find the abnormal returns of bidding innovative targets do not show significant difference from the peers in short-term market reaction. However, in the long-run, the group with innovative targets reports significant abnormal returns. Under multiple regression analysis, I find patent counts, total citations, and citation-weighted patent counts have positive relation with abnormal returns under WLS procedure, while only average citation yields the most consistent result under both OLS and WLS. Lastly, I confirm the relation between abnormal return and average citation measure by employing calendar time portfolio approach.
| Identifer | oai:union.ndltd.org:CHENGCHI/G0100357003 |
| Creators | 陳韋丞, Chen, Wei Cheng |
| Publisher | 國立政治大學 |
| Source Sets | National Chengchi University Libraries |
| Language | 英文 |
| Detected Language | English |
| Type | text |
| Rights | Copyright © nccu library on behalf of the copyright holders |
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