R&D intensive acquisitions and the best asset owner principle
(2021) BUSN79 20211Department of Business Administration
- Abstract
- We study the impact of research and development (R&D) intensity on acquisitions in R&D intensive industries. First, we look at the impact of target R&D intensity on acquirer return to see if it is affected by acquisition premiums. Second, we study the impact of target R&D intensity relative to acquirer R&D intensity and look at whether this impact is affected when the companies have similar operations. Finally, we study valuable asset combinations by estimating the impact of target R&D intensity on acquirer abnormal return for different levels of acquirer selling, general and administration (SG&A) intensity. Target R&D intensity does not seem to have a statistically significant impact on acquirer return in our sample, even at different... (More)
- We study the impact of research and development (R&D) intensity on acquisitions in R&D intensive industries. First, we look at the impact of target R&D intensity on acquirer return to see if it is affected by acquisition premiums. Second, we study the impact of target R&D intensity relative to acquirer R&D intensity and look at whether this impact is affected when the companies have similar operations. Finally, we study valuable asset combinations by estimating the impact of target R&D intensity on acquirer abnormal return for different levels of acquirer selling, general and administration (SG&A) intensity. Target R&D intensity does not seem to have a statistically significant impact on acquirer return in our sample, even at different levels of acquisition premiums. The relative R&D intensity does not seem to have any statistically significant impact on acquirer return, but the impact increases when the companies are strategically related. The positive impact of target R&D on acquirer abnormal return increases significantly with higher acquirer SG&A. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/9061244
- author
- Rintanen, Tatu Topias LU and Leise, Linus LU
- supervisor
- organization
- course
- BUSN79 20211
- year
- 2021
- type
- H1 - Master's Degree (One Year)
- subject
- keywords
- M&A, Abnormal returns, R&D intensity, Value creation, U.S. market
- language
- English
- id
- 9061244
- date added to LUP
- 2021-09-08 14:15:10
- date last changed
- 2021-09-08 14:15:10
@misc{9061244, abstract = {{We study the impact of research and development (R&D) intensity on acquisitions in R&D intensive industries. First, we look at the impact of target R&D intensity on acquirer return to see if it is affected by acquisition premiums. Second, we study the impact of target R&D intensity relative to acquirer R&D intensity and look at whether this impact is affected when the companies have similar operations. Finally, we study valuable asset combinations by estimating the impact of target R&D intensity on acquirer abnormal return for different levels of acquirer selling, general and administration (SG&A) intensity. Target R&D intensity does not seem to have a statistically significant impact on acquirer return in our sample, even at different levels of acquisition premiums. The relative R&D intensity does not seem to have any statistically significant impact on acquirer return, but the impact increases when the companies are strategically related. The positive impact of target R&D on acquirer abnormal return increases significantly with higher acquirer SG&A.}}, author = {{Rintanen, Tatu Topias and Leise, Linus}}, language = {{eng}}, note = {{Student Paper}}, title = {{R&D intensive acquisitions and the best asset owner principle}}, year = {{2021}}, }