ror.org/01k40cz91
Abstracts
Abstract
Using Community Innovation Survey data from France, we provide an empirical analysis of the innovative efforts of a sample of manufacturing firms that underwent a leveraged buyout. We find no evidence that LBOs have a negative effect on firm level of innovation expenditure. In contrast, results suggest that buyouts have a positive effect on incremental innovation and that private equity firms help to make innovation spending more effective and even more efficient. It could be that private equity firms help the company to focus on its core innovative capabilities and bring innovative products to the market without increasing innovation spending.
Keywords:
- Agency Costs,
- Leveraged Buyouts,
- Innovation,
- Private Equity,
- Propensity Score Matching,
- Strategic Entrepreneurship
Résumé
À partir des données CIS pour la France, nous analysons les efforts d’innovation d’entreprises industrielles ayant fait l’objet d’un LBO. Nous ne trouvons pas d’effet négatif des LBO sur le niveau des dépenses d’innovation des entreprises concernées. En revanche, les résultats suggèrent que les buyouts ont un effet positif sur l’innovation incrémentale et que les capital-investisseurs aident les entreprises à rendre les dépenses d’innovation plus efficaces et même plus efficientes. Il est possible que les capital-investisseurs aident l’entreprise à se concentrer sur ses capacités d’innovation essentielles et à mettre des produits innovants sur le marché sans augmenter les dépenses d’innovation.
Mots-clés :
- Coûts d’Agence,
- Leveraged Buyouts,
- Innovation,
- Capital-Investissement,
- Appariement par Score de Propension,
- Entrepreneuriat Stratégique
Resumen
A partir de los datos CIS por Francia, se analizan los esfuerzos de innovación de empresas industriales que fueron objeto de un LBO. No se encuentran efectos negativos de los LBO sobre el nivel de los gastos de innovación de dichas empresas. Al contrario, los resultados sugieren que los buyouts tienen un efecto positivo sobre la innovación incremental y que los capital inversores ayudan a las empresas a hacer más eficaces y aún más eficientes los gastos de innovación. Es posible que los capital inversores ayuden a la empresa a concentrarse en sus capacidades de innovación esenciales y a lanzar productos innovadores al mercado sin aumentar los gastos de innovación.
Palabras clave:
- Costes de Agencia,
- Leveraged Buyouts,
- Capital inversión,
- Pareamiento por Puntaje de Propensión,
- Emprendimiento Estratégico
Appendices
Bibliography
- Acharya, Viral V.; Franks, Julian; Servaes, Henry (2007). «PE: Boom and bust?», Journal of Applied Corporate Finance, Vol. 19, N° 4, p. 44-53.
- AFIC, 2013. Activité des acteurs français du Capital Investissement, http://www.afic.asso.fr/Website/site/fra_rubriques_activiteperformance_statistiques.htm. Accessed 03 June 2013.
- Aghion, Philippe; Askenazy, Philippe; Berman, Nicolas; Cette, Gilbert; Eymard, Laurent (2012). «Credit constraints and the cyclicality of R&D investment: Evidence from France», Journal of the European Economic Association, Vol. 10, N° 5, p. 1001-1024.
- Armbruster, Heidi; Bikalvi, Andrea; Kinkel, Steffen; Lay, Gunther (2008). «Organizational innovation: The challenge of measuring non-technical innovation in large-scale surveys, Technovation Vol. 28, N° 10, p. 644-657.
- Baum, Christopher F. (2012). «SSPECIALREG: Stata module to estimate binary choice model with discrete endogenous regressor via special regressor method». http://ideas.repec.org/c/boc/bocode/s457546.htmlhttp://ideas.repec.org/c/boc/bocode/s457546.html. Accessed 20 December 2012.
- Baum, Christopher F.; Dong, Yingying; Lewbel, Arthur; Yang, Tao (2012). «A simple alternative to the linear probability model for binary choice models with endogenous regressors», German Stata Users’ Group Meetings 2012 02, Stata Users Group. http://ideas.repec.org/e/pba1.html. Accessed 13 December 2012.
- Bertoni, Fabio; Ferrer, Maria Alejandra; Martí, José (2013). «The different role played by venture capital and private equity investors on the investment activity of their portfolio firms», Small Business Economics, Vol. 40, N° 3, p. 607-633.
- Boucly, Quentin; Sraer, David; Thesmar, David (2011). «Growth LBOs», Journal of Financial Economics, Vol. 102, N° 2, p. 432-453.
- Bruining, Hans; Wright, Mike (2002). «Entrepreneurial orientation in Management Buy-outs and the contribution of venture capital», Venture Capital, Vol. 4, N° 2, p. 147-168.
- Caliendo, Marco; Kopeinig, Sabine (2008). «Some practical guidance for the implementation of propensity score matching». Journal of Economic Surveys, Vol. 22, N° 1, p. 31-72.
- Cumming, Douglas J.; Siegel, Donald S.; Wright, Mike (2007). «Private equity, leveraged buyouts and governance». Journal of Corporate Finance, Vol. 13, p. 439-460.
- De Man, Ard-Pieter; Duysters, Geert (2005). «Collaboration and innovation: A review of the effects of mergers, acquisitions and alliances on innovation». Technovation Vol. 25, p. 1377-1387.
- Dong, Yingying; Lewbel, Arthur (2012). «A simple estimator for binary choice models with endogenous regressors». Econometric Reviews, forthcoming.
- Engel, Dirk; Stiebale, Joel (2014). «Private equity, investment and financial constraints: firm-level evidence for France and the United Kingdom». Small Business Economics Vol. 43, p. 197-212.
- Freeman, Christopher; Soete, Luc (1997). The Economics of Industrial Innovation, London, Washington: Pinter, 470 p.
- Gaspar, José-Miguel (2012). «The Performance of French LBO Firms: New data and new results», Finance, Vol. 33, N° 2, p. 7-60.
- Gilligan, John; Wright, Mike (2010). Private equity demystified: an explanatory guide, Second Edition. London: ICAEW.
- Glachant, Jérôme; Lorenzi, Jean-Hervé; Trainar, Philippe (2008). Private equity et capitalisme français, Conseil d’analyse économique, Paris.
- Gurung, Anurhada; Lerner, Josh (2008). The Global Economic Impact of Private Equity Report, World Economic Forum.
- Hall, Bronwyn H. (1990). «The impact of corporate restructuring on industrial research and development», Brookings Papers on Economic Activity: Microeconomics, p. 85-135.
- Heckman, James J.; Smith, Jeffray; Lalonde, Robert J. (1999). «The economics and econometrics of active labour market programs». Handbook of Labour Economics, Vol. 3, p. 1865-2097.
- Hendry, John (2002). «The principal’s other problems: honest incompetence and the specification of objectives», Academy of Management Review, Vol. 27, N° 1, p. 98-113.
- Hitt, Michael A.; Hoskisson, Robert E.; Johnson, Richard A.; Moesel, Douglas D. (1996). «The market for corporate control and firm innovation». The Academy of Management Journal, Vol. 39, N° 5, p. 1084-1119.
- Jensen, Michael C. (1993). «The modern industrial revolution, exit, and the failure of internal control systems», The Journal of Finance, Vol. 48, N° 3, p. 831–880.
- Lee, Choonwoo; Lee, Kyungmook; Pennings, Johannes M. (2001). «Internal capabilities, external networks, and performance: A study on technology-based ventures», Strategic Management Journal, Vol. 22, N° 6-7, p. 615-640.
- Lerner, Josh; Sorensen, Morten; Strömberg, Per J. (2011). «Private equity and long-run investment: The case of innovation», The Journal of Finance, Vol. 66, N° 2, p. 445-477.
- Lichtenberg, Frank; Siegel, Donald (1990). «The effects of leveraged buyouts on productivity and related aspects of firm behavior», Journal of Financial Economics, Vol. 27, p. 165-194.
- Long, William F.; Ravenscraft, David J. (1993). «LBOs, debt and R&D intensity». Strategic Management Journal, Vol. 14, p. 119-135.
- Malone, Stewart (1989). «Characteristics of smaller company leveraged buyouts». Journal of Business Venturing, Vol. 4, N° 5, p. 345-359.
- Mandl, Irene (2008). Overview of family business relevant issues, Final report, KMU Forschung Austria, Vienna.
- Meuleman, Miguel; Amess, Kevin; Wright, Mike; Scholes, Louise (2009). «Agency, strategic entrepreneurship, and the performance of private equity-backed buyouts», Entrepreneurship Theory and Practice, Vol. 33, p. 213-239.
- OECD (2005). Oslo Manual: guidelines for collecting and interpreting innovation data, 3rd Edition, Paris.
- PSE Socialist Group in the European Parliament (2007). Hedge funds and PE. A critical analysis. Report of the PSE Group in European Parliament.
- Rubin, Donald B., (1974). «Estimating causal effects of treatments in randomized and non randomized studies», Journal of Educational Psychology, Vol. 66, p. 688-701.
- Santamaría, Lluis; Nieto, Maria J.; Miles, Ian (2012). «Service innovation in manufacturing firms: Evidence from Spain», Technovation, Vol. 32, p. 144-155.
- Schumpeter, Joseph A. (1934). The theory of economic development, Cambridge, MA Harvard: University Press, 255 p.
- Smith, Abbie J. (1990). «Corporate ownership structure and performance: The case of management buyouts», Journal of Financial Economics, Vol. 27, p. 143-164.
- Ughetto, Elisa. (2010). «Assessing the contribution to innovation of private equity investors: A study on European buyouts», Research Policy, Vol. 39, p. 126-140.
- Ughetto Elisa, (2012). «Buyouts in western European countries: The impact on company growth and innovation», in D. Cumming (Ed.), The Oxford Handbook of Private Equity, Oxford University Press, New York, p. 300-326.
- Withers, Michael C.; Drnevich, Paul Louis; Marino, Louis (2011). «Doing more with less: The disordinal implications of firm age for leveraging capabilities for innovation activity». Journal of Small Business Management, Vol. 49, N° 4, p. 515-536.
- Wood, Geoffrey; Wright, Mike (2009). «Private equity: A review and synthesis». International Journal of Management Reviews, Vol. 11, N° 4, p. 361-380.
- Wright, Mike; Gilligan, John; Amess, Kevin (2008). «The economic impact of private equity: What we know and what we would like to know», Venture Capital, Vol. 11, N° 1, p. 1-21.
- Wright, Mike; Hoskisson, Robert; Busenitz, Lowell (2001a). «Firm rebirth: Buyouts as facilitators of strategic growth and entrepreneurship», Academy of Management Executive, Vol. 15, N° 1, p. 111-125.
- Wright, Mike; Hoskisson, Robert; Busenitz, Lowell; Dial, Jay (2001b). «Finance and management buyouts: Agency versus entrepreneurship perspectives», Venture Capital, Vol. 3, N° 3, p. 239-261.
- Wright, Mike; Thompson, Steve; Robbie, Ken (1992). «Venture capital and management-led, leveraged buy-outs: A European perspective», Journal of Business Venturing, Vol. 7, N°1, p. 47-71.
- Zahra, Shaker A. (1995). «Corporate entrepreneurship and financial performance: the case of management leveraged buy-outs», Journal of Business Venturing, Vol. 10, p. 225-247.
- Zahra, Shaker A.; Fescina, Michael (1991). «Will leveraged buyouts kill U.S. corporate research and development?», Academy of Management Executive, Vol. 5, N° 4, p. 7-21.