When a takeover is announced, the sum of the stock-market values of the firms involved often falls, and the value of the acquirer almost always does. Does this mean that takeovers do not raise the values of the firms involved? Not necessarily. We set up a model in which the equilibrium number of...

On news of a takeover, the sum of the stock-market values of the firms involved often falls, and the value of the acquirer almost always does. Does this mean that takeovers do not raise the values of the firms involved? Not necessarily. We set up a model in which the equilibrium number of...

We present a model of science-based entrepreneurship where ideas initially produced by researchers with scientific knowledge capital may be developed by high-ability entrepreneurs. With moderate verification costs, startups continuously managed by inventors-founders coexist in equilibrium with...

This paper studies the firm's decisions on in-house R&D and its procurement from outside through commissioned R&D, joint R&D, and technology acquisitions (i.e., licensing-in). Using the data about 14,000 manufacturing firms in Japan, we estimate a modified double-hurdle model in which the first...

Using an original data set of start-up firms in Japan, this paper investigates whether post-entry performance differs between start-up firms, according to the source of finance. In particular, the difference among firms that used entrepreneur' s own savings (insider finance), bank borrowing, and...