DIVERSIFICATION STRATEGY AND R&amp;D INTENSITY IN MULTIPRODUCT FIRMS.

Baysinger, Barry D.; Hoskisson, Robert E.

doi:10.2307/256364

Cited by 480 publications

(230 citation statements)

References 45 publications

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“…However, he demonstrates that synergistic gains are greater for large firms acquiring in related businesses as opposed to small firms executing related acquisitions. Kusewitt (1985), Bruton, Oviatt and White (1994) and others (Baysinger and Hoskisson 1989;Hagedoorn and Duysters 2002;Hitt et al 1991;Moeller et al 2004; find that size relatedness is only slightly connected to performance. Fuller et al (2002) even find larger cumulative abnormal returns (CARs) the smaller the target.…”

Section: Size Relatednessmentioning

confidence: 97%

“…Hagedoorn and Duysters (2002) find positive effects in technological similarity which they attribute to similar knowledge management mechanisms. However, Cassiman et al (2005) and others (Baysinger and Hoskisson 1989;Cloodt et al 2006;Hitt et al 1996) find empirical evidence that complementary technologies yield economic benefits in acquisitions.…”

Section: Technological Relatednessmentioning

confidence: 98%

“…Other authors treat M&A the same way (e. g. Gugler et al 2003). 5 Rumelt's typology includes the major categories: dominant business, related constrained, related linked and unrelated (conglomerate) businesses and has been applied in various studies Baysinger and Hoskisson 1989, Bettis and Hall 1982 For example, Datta et al (1991) review the literature on diversification and find inconclusive evidence. Palich et al (2000) conduct a meta-study and establish an inverted U-curve, i. e. diversification is profitable when a firm has been a single business firm and then diversifies into related businesses.…”

Section: Literature Review and Research Frameworkmentioning

confidence: 99%

See 2 more Smart Citations

Do synergies exist in related acquisitions? A meta-analysis of acquisition studies

2009

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Section: Size Relatednessmentioning

confidence: 97%

Section: Technological Relatednessmentioning

confidence: 98%

Section: Literature Review and Research Frameworkmentioning

confidence: 99%

See 1 more Smart Citation

Do synergies exist in related acquisitions? A meta-analysis of acquisition studies

2009

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“…In addition, Williamson (1988) concluded that debt providers might be unwilling to finance projects with high company specificity; such companies may exist in industries that may be associated with tangible and IA that have reduced tradability. Research evidence has shown that R&D of a company is negatively related to its GEARING (Balakrishnan & Fox, 1993;Baysinger & Hoskisson, 1989). This evidence is consistent with R&D as the driver of IA growth without which there is likely to be reduced levels of VDIC.…”

Section: Riskmentioning

confidence: 99%

Influence of Intellectual Capital Investment, Risk, Industry Membership and Corporate Governance Mechanisms on the Voluntary Disclosure of Intellectual Capital by UK Listed Companies

Mkumbuzi¹

2015

ASS

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This research examines the cross-sectional effect of intellectual capital investment, financial measures of market and company specific risk, industry membership and corporate governance on the extent of voluntary disclosure of intellectual capital (VDIC) in a sample of 443 FTSE All Share Index company annual reports for the year 2003/2004. The extent of disclosure is measured by a disclosure index (DI) based on intellectual capital (IC) attributes included in the narratives and illustrations of the annual reports. The research predicts that agency costs are mitigated by VDIC and that the benefits of signalling IC may outweigh competitive and proprietary costs that may be more prevalent in innovative and technological companies; furthermore, that effective corporate governance measures enhance VDIC particularly in those companies found to have a higher level of intangible assets (IA) in their resource base. The results suggest that companies associated with less financial risk, reduced debt, higher levels of liquidity and accompanied by growth are characterised with higher levels of VDIC. Although less significant, the results on market risk indicate a positive influence on VDIC. Furthermore, the extent of VDIC in annual reports is enhanced when large companies operating in high-tech and innovative industries are characterised by investments in employees; in contrast, companies associated with research and development processes tend to be more secretive with respect to VDIC. The results suggest that companies that are able to maintain adequate governance systems through segregation of executive and non-executive duties and to a less extent through the presence of experienced non-executive directors exhibit higher levels of disclosure.

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“…Earlier research has shown that R&D spending is influenced by a firm's size, industry and market structure (Scherer, 1984;Acs and Audretsch, 1990), patent protection and strategic alliances (Griliches, 1989, MacIntosh andCumming, 2000) and corporate strategy (Hoskisson and Hitt, 1988;Baysinger and Hoskisson, 1989;Baysinger et al 1991). If we believe that top managers are influenced by career concerns, then this is one of the most fundamental investment decisions made by them.…”

Section: The Incentive Innovation Randd Relationshipmentioning

confidence: 99%

Performance Sensitivity

Market Timing and Moving Averages

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This paper investigates whether aligning manager and owner incentives can improve the innovation performance of firms. We find that equity-linked compensation works to align managerial actions to shareholder interests. As managerial wealth becomes more sensitive to the firm's stock price the innovation performance of a firm improves. Entrenched managers, however, are more likely to act myopically and follow strategies that result in a large number of low quality patents. Short-term cash incentives have little impact on innovation. Higher managerial tenure increases the probability of R&D spending and innovation quality and thus better aligns the managers' actions with a firm's long-term goals. CEO control of the firm, however, decreases its innovation performance.JEL codes: G32, G30, L2, O3

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DIVERSIFICATION STRATEGY AND R&D INTENSITY IN MULTIPRODUCT FIRMS.

Cited by 480 publications

References 45 publications

Do synergies exist in related acquisitions? A meta-analysis of acquisition studies

Do synergies exist in related acquisitions? A meta-analysis of acquisition studies

Influence of Intellectual Capital Investment, Risk, Industry Membership and Corporate Governance Mechanisms on the Voluntary Disclosure of Intellectual Capital by UK Listed Companies

Performance Sensitivity

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