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Mergers & Acquisitions And Innovation Performance In The Telecommunications Equipment Industry

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  • Gantumur, Tseveen

    () (European University Viadrina)

  • Stephan, Andreas

    () (JIBS and CESIS)

Abstract

The telecommunications in the 1990s witnessed an enormous worldwide round of Mergers & Acquisitions (M&A). This paper examines the innovation determinants of M&A activity and the consequences of M&A transactions on the technological potential and the innovation performance. We examine the telecommunications equipment industry over the period 1988-2002 using a newly constructed data set with firm-level data describing M&A and innovation activity as well as financial characteristics. Based on a matching propensity score procedure, the study provides evidence that M&A realize significantly positive changes to the firm’s postmerger innovation performance.

Suggested Citation

  • Gantumur, Tseveen & Stephan, Andreas, 2007. "Mergers & Acquisitions And Innovation Performance In The Telecommunications Equipment Industry," Working Paper Series in Economics and Institutions of Innovation 111, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
  • Handle: RePEc:hhs:cesisp:0111
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    Cited by:

    1. Volodymyr Perederiy, 2007. "Kombinierte Liquiditäts- und Solvenzkennzahlen und ein darauf basierendes Insolvenzprognosemodell für deutsche GmbHs," SFB 649 Discussion Papers SFB649DP2007-060, Sonderforschungsbereich 649, Humboldt University, Berlin, Germany.
    2. Torsten Gerpott, 2009. "Forschung & Entwicklung und technologieorientierte Unternehmensakquisitionen," Metrika: International Journal for Theoretical and Applied Statistics, Springer, pages 9-41.
    3. Andreas Stephan, 2014. "Are public research spin-offs more innovative?," Small Business Economics, Springer, pages 353-368.
    4. Andreas Stephan, 2014. "Are public research spin-offs more innovative?," Small Business Economics, Springer, pages 353-368.

    More about this item

    Keywords

    Mergers & Acquisitions; Innovation Performance; Telecommunications Equipment Industry;

    JEL classification:

    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • L63 - Industrial Organization - - Industry Studies: Manufacturing - - - Microelectronics; Computers; Communications Equipment
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

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