The Impact of R&D Expenditure upon the Efficiency of M&A Deals with Hi-Tech Companies

The motives behind merger and acquisitions (M&A) are often linked with the opportunities to obtain knowledge and technologies in order to enhance the competitive advantages of companies. In particular, the acquisition of digital technologies through mergers and acquisitions with ICT companies i...

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Main Authors: Elena Ochirova, Yury Dranev
Format: Article
Language:English
Published: National Research University Higher School of Economics 2021-03-01
Series:Foresight and STI Governance
Subjects:
Online Access:https://foresight-journal.hse.ru/article/view/19313
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author Elena Ochirova
Yury Dranev
author_facet Elena Ochirova
Yury Dranev
author_sort Elena Ochirova
collection DOAJ
description The motives behind merger and acquisitions (M&A) are often linked with the opportunities to obtain knowledge and technologies in order to enhance the competitive advantages of companies. In particular, the acquisition of digital technologies through mergers and acquisitions with ICT companies is especially relevant. However, the efficiency of such deals is often low and calls into question the implementation of digitalization strategies of companies. In this study we employ an approach for assessing the efficiency of M&A deals with ICT companies by using the DEA method. Applying regression analysis, it was found that the high level of research and development expenses of acquirers can negatively impact the efficiency of the M&A deals with ICT companies.
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spelling doaj-art-eb8f7c23259a47ad98f53c9eaa77a6222025-08-20T02:08:46ZengNational Research University Higher School of EconomicsForesight and STI Governance2500-25972021-03-0115110.17323/2500-2597.2021.1.31.38The Impact of R&D Expenditure upon the Efficiency of M&A Deals with Hi-Tech CompaniesElena Ochirova0Yury Dranev1HSE UniversityHSE University The motives behind merger and acquisitions (M&A) are often linked with the opportunities to obtain knowledge and technologies in order to enhance the competitive advantages of companies. In particular, the acquisition of digital technologies through mergers and acquisitions with ICT companies is especially relevant. However, the efficiency of such deals is often low and calls into question the implementation of digitalization strategies of companies. In this study we employ an approach for assessing the efficiency of M&A deals with ICT companies by using the DEA method. Applying regression analysis, it was found that the high level of research and development expenses of acquirers can negatively impact the efficiency of the M&A deals with ICT companies. https://foresight-journal.hse.ru/article/view/19313research and development (R&D)digital technologiesICT sectormergers and acquisitions (M&A)gross domestic expenditure on R&DDEA
spellingShingle Elena Ochirova
Yury Dranev
The Impact of R&D Expenditure upon the Efficiency of M&A Deals with Hi-Tech Companies
Foresight and STI Governance
research and development (R&D)
digital technologies
ICT sector
mergers and acquisitions (M&A)
gross domestic expenditure on R&D
DEA
title The Impact of R&D Expenditure upon the Efficiency of M&A Deals with Hi-Tech Companies
title_full The Impact of R&D Expenditure upon the Efficiency of M&A Deals with Hi-Tech Companies
title_fullStr The Impact of R&D Expenditure upon the Efficiency of M&A Deals with Hi-Tech Companies
title_full_unstemmed The Impact of R&D Expenditure upon the Efficiency of M&A Deals with Hi-Tech Companies
title_short The Impact of R&D Expenditure upon the Efficiency of M&A Deals with Hi-Tech Companies
title_sort impact of r d expenditure upon the efficiency of m a deals with hi tech companies
topic research and development (R&D)
digital technologies
ICT sector
mergers and acquisitions (M&A)
gross domestic expenditure on R&D
DEA
url https://foresight-journal.hse.ru/article/view/19313
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