We analyze the impact of a merger on firms' incentives to innovate. We show that the merging parties always decrease … their innovation efforts post-merger while the outsiders to the merger respond by increasing their effort. A merger tends to … reduce overall innovation. Consumers are always worse off after a merger. Our model calls into question the applicability of …

predicts that a merger is more likely to be profitable in an innovation intensive industry. For a high degree of firm … heterogeneity, a merger reduces innovation of both the merged entity and non-merging competitors in an industry with high R … consistent with many predictions of the theoretical model. Our main result is that after a merger, patenting and R&D of the …

analyze the effects of less restrictive policies, including merger remedies and the tax treatment of acquisitions and initial …

, including merger remedies and the tax treatment of acquisitions and initial public offerings. Such interventions tend to prevent …

account in merger policy. Although we can show in our study that in one third of all challenged mergers also innovation …

high takeover threat. This study examines the effects of hostile takeover threats on managerial efforts to innovate. Our … results show that more active hostile takeover markets stifle managerial efforts in corporate innovation. The findings suggest … that managers tend to be more myopic when firms are exposed to hostile takeover threats. Managers will put less effort into …