Innovation Disclosures and the Design of Technology Acquisition Contracts: Evidence from the American Inventors Protection Act

References

• Ahuja G, Katila R (2001) Technological acquisitions and the innovation performance of acquiring firms: A longitudinal study. Strategic Management J. 22(3):197–220.Crossref, Google Scholar
• Akerlof GA (1970) The market for ‘lemons’: Qualitative uncertainty and the market mechanism. Quart. J. Econom. 84:488–500.Crossref, Google Scholar
• Arora A, Gambardella A (2010) The market for technology. Handbook of the Economics of Innovation, vol. 1 (North-Holland, Amsterdam), 641–678.Crossref, Google Scholar
• Arora A, Fosfuri A, Gambardella A (2001) Markets for technology and their implications for corporate strategy. Industrial Corporate Change 10(2):419–451.Crossref, Google Scholar
• Arrow K (1962) Economic Welfare and the Allocation of Resources for Invention. The Rate and Direction of Inventive Activity: Economic and Social Factors (National Bureau of Economic Research, Cambridge, MA).Google Scholar
• Ashford JR, Sowden RR (1970) Multi-variate probit analysis. Biometrics 26(3):535–546.Crossref, Google Scholar
• Babyak MA (2004) What you see may not be what you get: A brief, nontechnical introduction to overfitting in regression-type models. Psychosomatic Medicine 66(3):411–421.Google Scholar
• Balakrishnan S, Koza MP (1993) Information asymmetry, adverse selection and joint-ventures: Theory and evidence. J. Econom. Behav. Organ. 20(1):99–117.Crossref, Google Scholar
• Barich JM (2001) Pre-issuance publication of pending patent applications: Not so secret any more. J. Law Tech. Policy 2001(1):415–425.Google Scholar
• Barkema HG, Schijven M (2008) How do firms learn to make acquisitions? A review of past research and an agenda for the future. J. Management 34(3):594–634.Crossref, Google Scholar
• Baruffaldi SH, Simeth M (2020) Patents and knowledge diffusion: The effect of early disclosure. Res. Policy 49(4):103927.Crossref, Google Scholar
• Bena J, Li K (2014) Corporate innovations and mergers and acquisitions. J. Finance 69(5):1923–1960.Crossref, Google Scholar
• Benson D, Ziedonis RH (2009) Corporate venture capital as a window on new technologies: Implications for the performance of corporate investors when acquiring startups. Organ. Sci. 20(2):329–351.Link, Google Scholar
• Bloom N, Brynjolfsson E, Foster L, Jarmin R, Patnaik M, Saporta-Eksten I, Van Reenen J (2019) What drives differences in management practices? Amer. Econom. Rev. 109(5):1648–1683.Crossref, Google Scholar
• Busenbark JR, Yoon H, Gamache DL, Withers MC (2022) Omitted variable bias: Examining management research with the impact threshold of a confounding variable (ITCV). J. Management 48(1):17–48.Crossref, Google Scholar
• Cain MD, Denis DJ, Denis DK (2011) Earnouts: A study of financial contracting in acquisition agreements. J. Accounting Econom. 51(1–2):151–170.Crossref, Google Scholar
• Capron L, Shen JC (2007) Acquisitions of private vs. public firms: Private information, target selection, and acquirer returns. Strategic Management J. 28(9):891–911.Crossref, Google Scholar
• Carley M, Hegde D, Marco A (2015) What is the probability of receiving a US Patent? Yale J. Law Tech. 17:203–223.Google Scholar
• Chakrabarti A, Mitchell W (2013) The persistent effect of geographic distance in acquisition target selection. Organ. Sci. 24(6):1805–1826.Link, Google Scholar
• Chondrakis G (2016) Unique synergies in technology acquisitions. Res. Policy 45(9):1873–1889.Crossref, Google Scholar
• Chondrakis G, Serrano C, Ziedonis R (2021) Information disclosure and the market for acquiring technology companies. Strategic Management J. 42(5):1024–1053.Crossref, Google Scholar
• Clarkson G, Toh PK (2010) ‘Keep out’ signs: The role of deterrence in the competition for resources. Strategic Management J. 31(11):1202–1225.Crossref, Google Scholar
• Cohen WM, Levinthal DA (1990) Absorptive capacity: A new perspective on learning and innovation. Admin. Sci. Quart. 35(1):128–152.Crossref, Google Scholar
• Cohen WM, Nelson RR, Walsh JP (2000) Protecting their intellectual assets: Appropriability conditions and why US manufacturing firms patent (or not). NBER Working Paper No. 7552, National Bureau of Economic Research, Cambridge, MA.Crossref, Google Scholar
• Connelly BL, Certo ST, Ireland RD, Reutzel CR (2011) Signaling theory: A review and assessment. J. Management 37(1):39–67.Google Scholar
• Datar S, Frankel R, Wolfson M (2001) Earnouts: The effects of adverse selection and agency costs on acquisition techniques. J. Law Econom. Organ. 17(1):201–238.Crossref, Google Scholar
• Denis DJ, Macias AJ (2013) Material adverse change clauses and acquisition dynamics. J. Financial Quant. Anal. 48(3):819–847.Crossref, Google Scholar
• Field LC, Karpoff JM (2002) Takeover defenses of IPO firms. J. Finance 57(5):1857–1889.Crossref, Google Scholar
• Frank KA (2000) Impact of a confounding variable on a regression coefficient. Sociol. Methods Res. 29(2):147–194.Crossref, Google Scholar
• Frost J (2023) Overfitting regression models: Problems, detection, and avoidance. Retrieved March 14, https://statisticsbyjim.com/regression/overfitting-regression-models/.Google Scholar
• Gans JS, Stern S (2003) The product market and the market for “ideas”: Commercialization strategies for technology entrepreneurs. Res. Policy 32(2):333–350.Crossref, Google Scholar
• Gans JS, Hsu DH, Stern S (2008) The impact of uncertain intellectual property rights on the market for ideas: Evidence from patent grant delays. Management Sci. 54(5):982–997.Link, Google Scholar
• Gilson RJ, Schwartz A (2005) Understanding MACs: Moral hazard in acquisitions. J. Law Econom. Organ. 21(2):330–358.Crossref, Google Scholar
• Girotra K, Terwiesch C, Ulrich KT (2007) Valuing R&D projects in a portfolio: Evidence from the pharmaceutical industry. Management Sci. 53(9):1452–1466.Link, Google Scholar
• Graebner ME, Eisenhardt KM, Roundy PT (2010) Success and failure in technology acquisitions: Lessons for buyers and sellers. Acad. Management Perspective 24(3):73–92.Crossref, Google Scholar
• Graham S, Hegde D (2015) Disclosing patents’ secrets. Science 347(6219):236–237.Crossref, Google Scholar
• Greene WH (1997) Econometric Analysis, 3rd ed. (Macmillan, New York).Google Scholar
• Gulati R, Higgins MC (2003) Which ties matter when? The contingent effects of interorganizational partnerships on IPO success. Strategic Management J. 24(2):127–144.Crossref, Google Scholar
• Haeussler C, Harhoff D, Mueller E (2014) How patenting informs VC investors: The case of biotechnology. Res. Policy 43(8):1286–1298.Crossref, Google Scholar
• Hagedoorn J, Sadowski B (1999) The transition from strategic technology alliances to mergers and acquisitions: An exploratory study. J. Management Stud. 36(1):87–107.Crossref, Google Scholar
• Hall BH, Jaffe AB, Trajtenberg M (2001) The NBER patent citation data file: Lessons, insights and methodological tools. NBER Working Paper No. 8498, National Bureau of Economic Research, Cambridge, MA.Crossref, Google Scholar
• Hawkins DM (2004) The problem of overfitting. J. Chemical Inform. Comput. Sci. 44(1):1–12.Crossref, Google Scholar
• Heese J, Pérez-Cavazos G, Peter CD (2022) When the local newspaper leaves town: The effects of local newspaper closures on corporate misconduct. J. Financial Econom. 145(2):445–463.Crossref, Google Scholar
• Hegde D, Luo H (2018) Patent publication and the market for ideas. Management Sci. 64(2):652–672.Link, Google Scholar
• Hegde D, Herkenhoff K, Zhu C (2023) Patent publication and innovation. J. Political Econom. 131(7):1845–1903.Crossref, Google Scholar
• Higgins MJ, Rodriguez D (2006) The outsourcing of R&D through acquisitions in the pharmaceutical industry. J. Financial Econom. 80(2):351–383.Crossref, Google Scholar
• Hitt MA, King DR, Krishnan H, Makri M, Schijven M, Shimizu K, Zhu H (2012) Creating value through mergers and acquisitions: Challenges and opportunities. Faulkner D, Teerikangas S, Joseph R, eds. Handbook of Mergers and Acquisitions (Oxford University Press, Oxford, UK), 71–113.Crossref, Google Scholar
• Hoetker G (2007) The use of logit and probit models in strategic management research: Critical issues. Strategic Management J. 28(4):331–343.Crossref, Google Scholar
• Hsu DH (2006) Venture capitalists and cooperative start-up commercialization strategy. Management Sci. 52(2):204–219.Link, Google Scholar
• Hsu DH, Ziedonis RH (2013) Resources as dual sources of advantage: Implications for valuing entrepreneurial-firm patents. Strategic Management J. 34(7):761–781.Crossref, Google Scholar
• Jolliffe IT (1982) A note on the use of principal components in regression. J. Roy. Statist. Soc. Ser. C Appl. Statist. 31(3):300–303.Google Scholar
• Karim S, Mitchell W (2000) Path-dependent and path-breaking change: Reconfiguring business resources following acquisitions in the US medical sector, 1978–1995. Strategic Management J. 21(10–11):1061–1081.Crossref, Google Scholar
• Kim JY, Steensma HK (2017) Employee mobility, spin-outs, and knowledge spill-in: How incumbent firms can learn from new ventures. Strategic Management J. 38(8):1626–1645.Crossref, Google Scholar
• Kim J, Valentine K (2021) The innovation consequences of mandatory patent disclosures. J. Accounting Econom. 71(2–3):101381.Crossref, Google Scholar
• King DR, Slotegraaf RJ, Kesner I (2008) Performance implications of firm resource interactions in the acquisition of R&D-intensive firms. Organ. Sci. 19(2):327–340.Link, Google Scholar
• Kohers N, Ang J (2000) Earnouts in mergers: Agreeing to disagree and agreeing to stay. J. Bus. 73(3):445–476.Crossref, Google Scholar
• Long C (2002) Patent signals. University Chicago Law Rev. 69(2):625–679.Crossref, Google Scholar
• Lück S, Balsmeier B, Seliger F, Fleming L (2020) Early disclosure of invention and reduced duplication: An empirical test. Management Sci. 66(6):2677–2685.Link, Google Scholar
• Macias AJ, Moeller T (2016) Target signaling with material adverse change clauses in merger agreements. J. Empirical Finance 39:69–92.Crossref, Google Scholar
• Meng CL, Schmidt P (1985) On the cost of partial observability in the bivariate probit model. Internat. Econom. Rev. 26(1):71–85.Crossref, Google Scholar
• Mohammadi A, Khashabi P (2020) Patent disclosure and venture financing: The impact of the American Inventor’s Protection Act on corporate venture capital investments. Strategic Entrepreneurial J. 15(1):73–97.Crossref, Google Scholar
• Nary P, Kaul A (2021) Private equity as an intermediary in the market for corporate assets. Acad. Management Rev. 48(4):719–748.Google Scholar
• Officer MS (2003) Termination fees in mergers and acquisitions. J. Financial Econom. 69(3):431–467.Crossref, Google Scholar
• Popp D, Juhl T, Johnson DK (2004) Time in purgatory: Examining the grant lag for US patent applications. BE J. Econom. Analysis Policy 4(1):1–45.Google Scholar
• Puranam P, Srikanth K (2007) What they know vs. what they do: How acquirers leverage technology acquisitions. Strategic Management J. 28(8):805–825.Crossref, Google Scholar
• Ragozzino R, Reuer JJ (2009) Contingent earnouts in acquisitions of privately held targets. J. Management 35(4):857–879.Crossref, Google Scholar
• Ransbotham S, Mitra S (2010) Target age and the acquisition of innovation in high-technology industries. Management Sci. 56(11):2076–2093.Link, Google Scholar
• Reed W (2000) A unified statistical model of conflict onset and escalation. Amer. J. Political Sci. 44(1):84–93.Crossref, Google Scholar
• Reuer J, Ragozzino R (2012) The choice between joint ventures and acquisitions: Insights from signaling theory. Organ. Sci. 23(4):1175–1190.Link, Google Scholar
• Roberts MR, Whited T (2013) Endogeneity in empirical corporate finance. Constantinides G, Stulz R, Harris M, eds. Handbook of the Economics of Finance, vol. 2A (Elsevier, Amsterdam), 493–572.Crossref, Google Scholar
• Rosenkopf L, Almeida P (2003) Overcoming local search through alliances and mobility. Management Sci. 49(6):751–766.Link, Google Scholar
• Saidi F, Žaldokas A (2021) How does firms’ innovation disclosure affect their banking relationships? Management Sci. 67(2):742–768.Link, Google Scholar
• Schijven M, Heimeriks K, Graebner M, Haspeslagh P, Mitchell W (2024) Thirty-three years after “Managing Acquisitions”: Reflections, insights, and research directions. Strategic Management Rev. Forthcoming.Google Scholar
• Schildt HA, Laamanen T (2006) Who buys whom: Information environments and organizational boundary spanning through acquisitions. Strategic Organ. 4(2):111–133.Crossref, Google Scholar
• Scotchmer S (2004) Innovation and Incentives (MIT Press, Cambridge, MA).Google Scholar
• Stellner F (2015) The impact of technological distance on M&A target choice and transaction value. Stellner F, technological distance: Theoretical foundations, statistical analysis and application to mergers and acquisitions, Norderstedt, BoD, pp. 91–143. Max Planck Institute for Innovation & Competition Research Paper No. 15-12, Max Planck Institute for Innovation and Competition, München, Germany.Google Scholar
• Testoni M, Sakakibara M, Chen MK (2022) Face-to-face interactions and the returns to acquisitions: Evidence from smartphone geolocational data. Strategic Management J. 43(13):2669–2702.Crossref, Google Scholar
• Vanhaverbeke W, Duysters G, Noorderhaven N (2002) External technology sourcing through alliances or acquisitions: An analysis of the application-specific integrated circuits industry. Organ. Sci. 13(6):714–733.Link, Google Scholar
• Villalonga B, McGahan AM (2005) The choice among acquisitions, alliances, and divestitures. Strategic Management J. 26(13):1183–1208.Crossref, Google Scholar
• Wiersema MF, Bowen HP (2009) The use of limited dependent variable techniques in strategy research: Issues and methods. Strategic Management J. 30(6):679–692.Crossref, Google Scholar
• Zaheer A, Hernandez E, Banerjee S (2010) Prior alliances with targets and acquisition performance in knowledge-intensive industries. Organ. Sci. 21(5):1072–1091.Link, Google Scholar