Skip to main content
DORAS
DCU Online Research Access Service
Login (DCU Staff Only)
Does acquisition lead to the growth of high-tech scale-ups? Evidence from Europe

Burger, Anže ORCID: 0000-0001-8027-9993, Hogan, Teresa ORCID: 0000-0002-9508-1717, Kotnik, Patricia ORCID: 0000-0002-2603-4108, Rao, Sandeep ORCID: 0000-0001-7752-4492 and Sakinc, Mustafa Erdem ORCID: 0000-0001-9161-6334 (2022) Does acquisition lead to the growth of high-tech scale-ups? Evidence from Europe. Research in International Business and Finance, 64 . ISSN 0275-5319

Full text available as:

[img]
Preview
PDF - Requires a PDF viewer such as GSview, Xpdf or Adobe Acrobat Reader
1MB

Abstract

The post-acquisition growth of high-tech scaleups has received relatively little research attention. This is surprising since buyers are known to target these firms for growth opportunities whilst sellers increasingly seek strategic partners to access resource to scale their ventures. We examine the post-acquisition revenue and employment growth of high-tech scaleups in a multi-country setting, comprising five European economies. Using a propensity-score matching approach and difference-in-differences regression, for a sample of 2187 high-tech scaleups, we demonstrate that acquisition has a positive effect on target firms equivalent to cumulative growth of revenue (employment) of 9-13 (6-10) percent after five (four) years, relative to control firms. We find that nationality matters such that the targets of foreign-owned acquirers exhibit significantly higher cumulative revenue and employment growth than their domestic counterparts. Taking a longer-term perspective, we show that growth dips in the first year, then stabilizes and accelerates in the years following acquisition, indicating a period of adjustment.

Item Type:Article (Published)
Refereed:Yes
Additional Information:Article number:101820
Uncontrolled Keywords:Acquisitions; Cross-border acquisitions; Domestic acquisitions; Firm growth; High-tech scaleups; Propensity-score Matching
Subjects:Business > Accounting
Business > Finance
Business > Management
Business > Innovation
DCU Faculties and Centres:DCU Faculties and Schools > DCU Business School
Publisher:Elsevier
Official URL:https://doi.org/10.1016/j.ribaf.2022.101820
Copyright Information:© The Authors.
ID Code:27940
Deposited On:16 Dec 2022 16:37 by Sandeep Keshava Rao . Last Modified 14 Mar 2023 14:43

Downloads

Downloads per month over past year

Archive Staff Only: edit this record

Altmetric
- Altmetric
+ Altmetric
  • Student Email
  • Staff Email
  • Student Apps
  • Staff Apps
  • Loop
  • Disclaimer
  • Privacy
  • Contact Us