Please use this identifier to cite or link to this item: http://hdl.handle.net/11718/25494
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dc.contributor.authorBasant, Rakesh-
dc.contributor.authorJaiswal, Neha-
dc.date.accessioned2022-03-01T12:24:29Z-
dc.date.available2022-03-01T12:24:29Z-
dc.date.issued2022-01-01-
dc.identifier.citationBasant, R., & Jaiswal, N. (2022). Impact of Mergers and Acquisitions on Innovation: Evidence from a Panel of Indian Pharmaceutical Firms. IIM Ahmedabad.en_US
dc.identifier.urihttp://hdl.handle.net/11718/25494-
dc.description.abstractBased on the literature, the paper identifies processes that get initiated post an M&A event and affect the acquiring firm’s innovation efforts. We apply panel fixed effects estimation techniques to analyze the individual impact of mergers and acquisitions on R&D intensity of acquiring firms using data for 217 publically listed Indian pharmaceutical firms (both acquirers and non-acquirers) during 1999-2018. The study finds that acquisitions rather than mergers provide impetus to R&D in the acquiring firms. This suggests that these two combinations – mergers and acquisitions - do not unleash the same type of innovation activity related processes in the acquiring firm. Results also show that when mergers or acquisitions are combined with purchase of assets, they have a positive impact on R&D intensity. Purchase of assets when combined with M&A seem to provide access to relevant complementary assets that makes R&D activity profitable for the acquirer post the merger or acquisition event. Possibly, firms view purchase of assets as a strategy that is complementary to M&A strategies for enhancing innovation. The paper shows that impact of M&A on R&D takes time and it is useful to analyze the impact of mergers and acquisitions separately, rather than combining the two together.en_US
dc.language.isoenen_US
dc.publisherIndian Institute of Management Ahmedabaden_US
dc.subjectMergersen_US
dc.subjectAcquisitionsen_US
dc.subjectComplementary assetsen_US
dc.subjectR&Den_US
dc.subjectInnovationen_US
dc.subjectIndian pharmaceutical industryen_US
dc.titleImpact of mergers and acquisitions on innovation: evidence from a panel of Indian pharmaceutical firmsen_US
dc.typeWorking Paperen_US
Appears in Collections:Working Papers

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