Examining the stock performance of acquirers where the acquirer or target hold patents

Kim, Kevin H; Oler, Derek; Sánchez, Juan M.

doi:10.1007/s11156-020-00890-0

Cited by 5 publications

(2 citation statements)

References 51 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…Moreover, the authors find that only positive short-term performance can predict the long-term performance of acquirers. Kim et al (2021) find that acquisitions of innovative targets yield positive returns for acquirers around the announcement day which can persist for a longer period if the acquirers are familiar with the targets industry.…”

Section: Hypotheses Developmentmentioning

confidence: 86%

An exploratory study of US acquirers’ market performance: pre- versus post-Sarbanes–Oxley act of 2002

Hajjar

Menassa

Kassamany

2021

JFRA

View full text Add to dashboard Cite

Purpose Motivated by the findings of Bhabra and Hossain (2017) that highlight an improvement in US market performance in the post-Sarbanes–Oxley (SOX) period, this paper aims to investigate how this change varies with the methods of payment used for the deals. Design/methodology/approach Deductive in nature and using an event study approach, this paper uses a sample of 675 deals between 1999 and 2006 to test three research hypotheses in a pre-post setting. Findings Results show that at the aggregate level, there is a significant improvement in the market performance of US acquirers around the announcement day in the aftermath of the passage of SOX 2002. Considered separately, both US stock acquirers and cash acquirers did not experience any significant improvement in market performance in the post-Sarbanes–Oxley period. These results are robust to controlling for governance, firm and deal variables, as well as industry and year fixed effects. Research limitations/implications Exploratory in nature, the results are to be interpreted in light of the sample size and the period under investigation. Practical implications The results provide evidence for regulators and legislators on the contribution of SOX 2002 to curbing managerial misconduct. Significant improvement in the market performance also signals more confidence in managerial decisions and a reduction in agency problems. The insignificant change in stock acquirersâ€™ market performance can be an indication that policymakers should exert more efforts to improve shareholders' confidence in the quality of disclosure. Originality/value This investigation provides unique insights on whether SOX has been effective in mitigating mispricing concerns associated with stock-financed acquisitions and whether it was effective in moderating the governance mechanism associated with cash-financed acquisitions.

show abstract

Section: Hypotheses Developmentmentioning

confidence: 86%

An exploratory study of US acquirers’ market performance: pre- versus post-Sarbanes–Oxley act of 2002

Hajjar

Menassa

Kassamany

2021

JFRA

View full text Add to dashboard Cite

show abstract

“…En concordancia, se puede destacar que la inversión en I+D permite a las empresas crear nuevos conocimientos y a su vez nueva tecnología, las cuales pueden ser registradas como patentes (Kim, Oler y Sanchez, 2020). En definitiva, el proceso de I+D eventualmente conlleva al desarrollo de nuevos productos, o a su vez a la entrada de nuevos equipos tecnológicos útiles para el desarrollo de procesos, dichas innovaciones contribuyen a una producción más eficaz y naturalmente a cumplir con las demandas del mercado satisfaciendo a los consumidores (Acosta, Coronado y Romero, 2015).…”

Section: Determinantes De La Innovaciónunclassified

Determinantes del resultado de la innovación en empresas españolas

2021

RCS

View full text Add to dashboard Cite

It has been proven that innovation is essential for the survival of companies as well as for the growth of a country, for this reason an efficient investment in innovation will allow to obtain optimal results and in turn achieve improvements in the organization of the company, efficiency in management and, above all, obtain competitive advantages that generate consolidation in the market. This study examines how determinants of innovation, specifically: Product innovation, process innovation and patents, influence the result of innovation in Spanish manufacturing companies; considering the effect of innovation outputs from innovation inputs (internal R&D expenses, external R&D expenses, public funding, specialized R&D personnel and cooperation with external agents) during the 2003 period -2016. This empirical analysis uses a sample of 12,849 companies that carry out innovative activity in Spanish territory, through the PITEC database. The main results obtained reflect that all the indicators analyzed favor the innovative process of companies, admitting as a conclusion, a causal relationship between the efforts applied in innovation and the response capacity of companies.

show abstract

Air pollution and innovation-evidence from quasi-natural experiment of China’s Huai River policy

Qiao¹,

Wang

2022

Rev Quant Finan Acc

View full text Add to dashboard Cite

Examining the stock performance of acquirers where the acquirer or target hold patents

Cited by 5 publications

References 51 publications

An exploratory study of US acquirers’ market performance: pre- versus post-Sarbanes–Oxley act of 2002

An exploratory study of US acquirers’ market performance: pre- versus post-Sarbanes–Oxley act of 2002

Determinantes del resultado de la innovación en empresas españolas

Air pollution and innovation-evidence from quasi-natural experiment of China’s Huai River policy

Contact Info

Product

Resources

About