This chapter discusses how applied researchers in corporate finance can address endogeneity concerns. We begin by reviewing the sources of endogeneity - omitted variables, simultaneity, and measurement error - and their implications for inference. We then discuss in detail a number of...

The combination of research and development units following a merger or an acquisition usually requires a broad and widespread integration project to ensure that a company’s innovative capabilities are carried forward into the future. Previous research has shown, however, that the combined...