Please use this identifier to cite or link to this item:
Innovations and Earnings Non-Synchronicity: Evidence from Industry M&A Activities
|Title:||Innovations and Earnings Non-Synchronicity: Evidence from Industry M&A Activities|
Industry M&A Activities
|Date Issued:||16 Aug 2020|
|Abstract:||This paper investigates how earnings non-synchronicity impacts associated with firm-level research and development (R&D) investment vary as a function of industry-level merger and acquisition (M&A) intensity. Investing in R&D enables firms to differentiate and gain competitive advantages; differentiation strategies increase idiosyncratic variation in firms' earnings. We bring in an industry-level contextual variable, industry-level M&A, and show that the positive relationship between R&D investment and earnings non-synchronicity is increasing in the intensity of inside-industry but not outside-industry M&A, consistent with our conjecture that M&A within an industry facilitates an expansion of knowledge base and induces more innovative R&D through complementary effects.|
|Appears in Collections:||
16 Financial Accounting 9: Fair Value Accounting/ Intangible Assets/Innovations|
Please email email@example.com if you need this content in ADA-compliant format.
Items in ScholarSpace are protected by copyright, with all rights reserved, unless otherwise indicated.