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The Innovation Perspective Of The Acquirers: Empirical Evidence Regarding Patent-Driven M&As

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  • GEORGE MARIAN AEVOAE

    (“Alexandru Ioan Cuza†University of Iasi, Carol I Blvd, no. 11, Iasi, Romania)

  • ROXANA DICU

    (“Alexandru Ioan Cuza†University of Iasi, Carol I Blvd, no. 11, Iasi, Romania)

  • DANIELA MARDIROS

    (“Alexandru Ioan Cuza†University of Iasi, Carol I Blvd, no. 11, Iasi, Romania)

Abstract

Economic entities get involved in mergers and acquisitions (M&As) because they are interested in external growth strategies which can lead to an increase in the wealth of the shareholders of the participating entities. In M&As, from an acquirer or a target’s perspective, a company brings its resources, which can be material or immaterial (knowledge). In the post-M&A phase, through the integration process the shareholders expect synergy gains, or that the combined firms to report efficiency gains higher than if they would activate separately. In nowadays, in a boundaryless economy, one of the most appreciated resources is knowledge. In this respect, the intangible assets, in general, and patents, in particular, are the accounting representation of knowledge in a company. They are also considered to be predictors for the deal value paid to the target company. To those we add the size of the target company, its core activity and the value of the research and development expenses, the latter being a significant mediator variable for the proposed models.

Suggested Citation

  • George Marian Aevoae & Roxana Dicu & Daniela Mardiros, 2019. "The Innovation Perspective Of The Acquirers: Empirical Evidence Regarding Patent-Driven M&As," Review of Economic and Business Studies, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, issue 24, pages 57-78, December.
  • Handle: RePEc:aic:revebs:y:2019:j:24:aevoaeg
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    References listed on IDEAS

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    More about this item

    Keywords

    innovation; theories of the firm; M&As; innovation; performance;
    All these keywords.

    JEL classification:

    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • M16 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - International Business Administration
    • M20 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - General

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