Acquiring Innovation under Information Frictions
研究发现企业创新与收购风险呈倒U型关系，收购方尽职调查仅能揭示目标30%的私有信息，消除信息摩擦可使并购资本收益增加59%，并促进创新、生产率和商业活力。
Abstract Acquiring innovation through M&A is subject to information frictions, as assessing the value of innovative targets is a challenging task. We find an inverted U-shaped relation between firm innovation and takeover exposure; equity usage increases with target innovation; and the deal completion rate drops with innovation. We develop and estimate a model of acquiring innovation under information frictions, featuring endogenous merger, innovation, and offer composition decisions. Our estimates suggest that acquirers’ due diligence reveals only 30$\%$ of private information possessed by targets. Eliminating information frictions increases capitalized merger gains by 59$\%$, stimulates innovation, and boosts productivity, business dynamism, and social welfare.