Earticle

초록

영어

We examine the eects of heterogeneous rm technological competence, and industry R&D uncertainty and costs on rm decisions of remaining private, going public and being acquired. Using a new R&D project development dataset for private rms in the drug industries, we show that the initial condition of technological competence interacting with product market conditions determines long-run growth outcomes of private rms. We nd that rms with low inherent competence are more likely to retain their growth options by remaining private, when facing high industry-level R&D uncertainty or costs. Firms with low competence but relatively matured R&D projects in their pipelines are more likely to be acquired and thus transfer their growth options to acquirers. Firms with high competence are more likely to go public. Using the Biologics Price Competition and Innovation Act (BPCIA) in 2010 as an exogenous shock to the R&D costs, we nd an increase in aected rms going public following the shock.

목차

Abstract
 1 Introduction
 2 Hypotheses Development
 3 Data and Statistics
  3.1 Sample Construction and New Drug R&D
  3.2 Measures of Firm and Industry R&D Conditions
  3.3 Choice between IPO and Acquisition
  3.4 Summary Statistics
 4 Firm R&D Competence
  4.1 Initial R&D Competence
  4.2 Firm Final Growth Decisions
  4.3 Panel Regression Analysis
  4.4 Natural Experiment with BPCIA
 5 Conclusion
 Appendix

키워드

저자

• Kyungran Lee [ The University of Maryland, the University of Southern California, and Peking University HSBC Business School, respectively. ]
• S. Katie Moon [ The University of Maryland, the University of Southern California, and Peking University HSBC Business School, respectively. ]
• Seungjoon Oh [ The University of Maryland, the University of Southern California, and Peking University HSBC Business School, respectively. ]

참고문헌

발행기관

간행물

표지보기 관심저널 등록

• 간행물명

  한국재무학회 학술대회

• 간기

  부정기

• 수록기간

  2006~2024

• 십진분류

  KDC 325 DDC 330