| By: |
Tseveen Gantumur;
Andreas Stephan |
| 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 post-merger innovation performance. |
| Keywords: |
Mergers & Acquisitions, Innovation Performance, Telecommunications Equipment Industry |
| JEL: |
L63 O30 L10 |
| Date: |
2007 |
| URL: |
http://d.repec.org/n?u=RePEc:diw:diwwpp:dp728&r=ind |