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- Title
The crowding‐out effects of innovation information disclosure on peers' innovation: Evidence from innovation‐driven M&As in China.
- Authors
Cao, Zhangfan; Hua, Chen; Tong, Yan; Wang, Xi
- Abstract
This study investigates the impact of rivals' announcements of innovation‐driven mergers and acquisitions (M&As) on focal firms' ex‐post corporate innovation performance. Exploiting a hand‐collected dataset of Chinese listed firms from 2011 to 2018, we find that focal firms file fewer patents after rivals' announcements of innovation‐driven M&As. Further analyses show that focal firms become more conservative and hold more cash when rivals intend to obtain innovation resources through M&As. We find that such crowding‐out effects are more pronounced for focal firms that are more financially constrained, those facing higher competition, those whose rivals are industry leaders, and those operating in traditional industries.
- Subjects
CHINA; DISCLOSURE; MERGERS &; acquisitions; ORGANIZATIONAL performance; EARNINGS announcements; CASH position of corporations
- Publication
Accounting & Finance, 2023, Vol 63, Issue 5, p4883
- ISSN
0810-5391
- Publication type
Article
- DOI
10.1111/acfi.13165