Please use this identifier to cite or link to this item:
http://hdl.handle.net/10397/65000
Title: | The R&D premium and takeover risk | Authors: | Lin, JC Wang, YA |
Issue Date: | May-2016 | Source: | Accounting review, May 2016, v. 91, no. 3, p. 955-971 | Abstract: | To explain why firms with high research and development (R&D) intensity offer their investors higher stock returns, we argue that (1) high R&D capacity relative to firm valuation makes R&D-intensive firms attractive takeover targets, and that (2) the higher takeover probability leads their investors to face higher takeover risk, as proposed by Cremers, Nair, and John (2009), and require higher returns. We find evidence consistent with our hypothesis. Furthermore, we find that takeover probability also relates to large R&D increases, but not to innovation efficiency. Accordingly, we expect and find that takeover risk helps to explain the premium associated with large R&D increases, but not the innovation efficiency premium previously documented. | Keywords: | R&D Takeover risk Risk premium |
Publisher: | American Accounting Association | Journal: | Accounting review | ISSN: | 0001-4826 | EISSN: | 1558-7967 | DOI: | 10.2308/accr-51270 | Rights: | This is the accepted manuscript of the following article: Lin, J. C., & Wang, Y. (2016). The R&D premium and takeover risk. The Accounting Review, 91(3), 955-971, which has been published in final form at https://doi.org/10.2308/accr-51270. |
Appears in Collections: | Journal/Magazine Article |
Files in This Item:
File | Description | Size | Format | |
---|---|---|---|---|
Lin_RandD_Premium_And.pdf | Pre-Published version | 353.11 kB | Adobe PDF | View/Open |
Page views
425
Last Week
5
5
Last month
Citations as of Oct 13, 2024
Downloads
152
Citations as of Oct 13, 2024
SCOPUSTM
Citations
20
Last Week
0
0
Last month
Citations as of Jul 11, 2024
WEB OF SCIENCETM
Citations
16
Last Week
0
0
Last month
Citations as of Oct 10, 2024
Google ScholarTM
Check
Altmetric
Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.