1,721,050 research outputs found
A meta-analytic study of the relationship between r & d investments and corporate value
No full textThis study presents a meta-analysis of the empirical literature linking R&D investments and firm’s performance and assesses the magnitude of the reported coefficients against three potential moderating factors: the time window used in the study, the reliability of the independent variable and the reliability of the dependent variable. Applying Hunter and Schmidt correction procedures on all published studies using hedonic models to estimate the impact of different corporate assets on the market value of the firm we show that the relationship is consistently positive. Significant differences in the size of the effect emerge, however, depending on the period of observation, while the concerns commonly raised on empirical indicators such as Tobin’s q or R&D investment measures find no empirical support
Acquisitions Of Non-Controlling Equity Stakes: Agency Conflicts And Profitability
Full text linkWhile past research on minority acquisitions has ignored how agency conflicts could prevent acquirers from realizing value creation opportunities, this study investigates whether principal–agent and principal–principal conflicts with the target’s managers and controlling shareholder hinder acquirers’ ability to capture value from acquisitions of non-controlling equity stakes. Using archival data from a global sample of 443 minority acquisitions announced between 2011 and 2019, we found that cumulative abnormal returns are positively associated to minority shareholder protection and negatively associated to the presence of a strong controlling shareholder in the target firm. We also found that acquisitions of small non-controlling equity stakes amplify the negative effect of the strong controlling shareholder, which instead weakens if acquirers purchase large non-controlling equity stakes. This study contributes to the development of our understanding of the conditions that expose acquirers to value losses from minority acquisitions by examining the intricate bundle of agency conflicts with the target’s managers and controlling shareholder. In so doing, this study also provides useful insights to business practice
La funzione finanziaria tra paradigmi tradizionali e nuove prospettive
No full textLa funzione finanziaria fra paradigmi tradizionali e nuove prospettiv
Uncertainty and the market valuation of R&D within a real options logic
No full textThe aim of this study is to provide new theoretical insights and empirical evidence on the effect of market and technological uncertainty on the market valuation of a firm's R&D capital. A set of hypotheses is developed adopting a real options logic and tested on a panel dataset of 290 manufacturing firms traded in the UK. Consistently with our theoretical model, we show that market and technological uncertainty have distinct effects on the valuation of R&D investments. The results have several important implications for resource allocation to R&D under uncertainty, which we discuss in the concluding sectio
MNC strategies to limit spillovers: How subsidiaries manage knowledge breadth to decrease spillovers
No full textThe aim of this paper is to investigate the factors influencing the speed at which knowledge flows from foreign to domestic firms. The focus is not on whether a knowledge spillover occurs, but on the time an MNC subsidiary’s knowledge takes to spread in the surroundings. Filling the gap in the literature regarding spillover speed in International Business by means of the insights from Innovation Studies, with particular reference to the literature on search, we propose a conceptual model where the speed of local knowledge diffusion is influenced by the technology sourcing strategies of subsidiaries. We then test our model using a database covering 1394 US patents from foreign MNC subsidiaries in the semiconductors sector. We find that not only does the breadth of the set of subsidiary knowledge sources slow down local knowledge diffusion, but the delay is mainly related to the diversity of global and internal sources used by the subsidiary, hinting at strategies that MNCs can use to further protect their knowledg
When does crowdsourcing benefit firm stock market performance?
No full textCrowdsourcing is a particular form of open innovation (OI) that aims to boost idea-generation in innovation processes. The underlying rationale is that the collective intelligence of a large number of contributors outside the firm's boundaries increases the likelihood of achieving ‘extreme outcomes’, i.e., high quality ideas with exceptional business potential. Due to the idiosyncrasies that differentiate crowdsourcing from other forms of OI, the findings from prior research on the performance implications of OI cannot be directly extended to crowdsourcing. Similarly, the findings on the effect of internal R&D on firm performance cannot be directly applied to crowdsourcing due to the greater uncertainty in dealing with a crowd of unknown individuals outside the organization whose ideas have to be evaluated and ultimately processed internally. Thus, while crowdsourcing research has recently burgeoned, it is ambiguous as to whether and when crowdsourcing is beneficial for firms. In fact, the overall effect of crowdsourcing on a firm's future profits has not been thoroughly investigated. To fill this gap, we conducted an event study analyzing stock market reactions to crowdsourcing announcements, a forward-looking market-based measure able to isolate the effect of crowdsourcing on a firm's future profits, which we refer to as firm stock market performance. Drawing on the resource-based view, we argue that an external crowd can become a valuable resource if the firm is able to extract value from it. Our findings show that two key contingency factors, i.e., brand value and investment opportunities, determine the boundary conditions that enable firms to extract value from the crowd, resulting in a positive stock market reaction to the announcement of a crowdsourcing campaign. In addition to advancing scholarly knowledge on crowdsourcing, our results provide practitioners with relevant indications for profitable crowdsourcing campaigns
The impact of corporate strategy on capital structure: evidence from Italian listed firms
No full textThe impact of corporate strategy decisions on capital structure has attracted substantial scholarly and managerial attention from decades, although leading to mixed and inconclusive results until now. While previous studies have focused on the effect brought about by a single strategy at a time, this study tries to reconcile the overall picture of the impact of strategic decisions on capital structure. Based on the Strategy Hierarchy Theory, we estimated the effect brought about by the three strategies determined at the corporate level: internationalization, diversification and integration. The results provide empirical evidence that the above-mentioned strategies impact firms’ capital structure both simultaneously and independently. Integration and internationalization are negatively related with debt ratio while diversification is positively related with debt ratio. The findings of our paper contribute to enrich the strategy/capital-structure literature, and provide academics and managers a clearer understanding of the effect brought about by the capital structure on corporate strategy
Oggetto del giudizio di appello e riparto degli oneri probatori: una recente (e non accettabile) pronuncia delle sezioni unite
No full textWhen do M&As with Fintech Firms Benefit Traditional Banks?
No full textIn the last decade, fintech has emerged in the financial sector, introducing numerous innovations that have severely impacted traditional banks. To respond to fintech firms and meet the new needs of consumers, banks seek to align their offerings by integrating fintech knowledge through mergers and acquisitions (M&As) within an open innovation framework. However, it is still not clear when exactly M&As with fintech firms benefit banks. This paper examines the contingency factors that make M&As beneficial for acquirer banks by using a holistic approach that considers the type of firm, type of deal and the context in which M&As occur. We analysed the effect produced by acquirer sustainability, minority acquisitions and institutional distance between the fintech and the bank's country of incorporation by applying an event study methodology using cumulative abnormal returns to gauge effects on expected performance. We have shown which are the conditions that allow us to maximize the acquirer bank's expected performance. Our research advances the scientific understanding of M&A contingency factors, and more generally of open innovation, in the specific context of fintech and banks. Moreover, we provide managers and policymakers with initial advice on the effects fintech M&As have on traditional banks, showing that they can be beneficial under specific conditions
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