Privatization and R&D Performance: An Empirical Analysis Based on Tobin's q

Munari, Federico and Oriani, Raffaele (2002) Privatization and R&D Performance: An Empirical Analysis Based on Tobin's q. [Working Paper]. p. 43. Note di Lavoro: Institutions and Markets (No. 63.2002).

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In this paper, we analyze the impact of privatization on the firms' R&D performance. We expect that, in the early period after privatization, path dependencies still negatively affect the efficiency of R&D operations. We test our hypothesis using a Tobin's q measure and estimating a hedonic model, already adopted by several scholars to assess the impact of innovation related assets on the firm's market value (Griliches, 1981). We estimate the regression model on an original panel data of 40 firms, including 20 firms privatized through public share offering in different countries of Western Europe over the period 1982-1997 that were matched at the country and industry level with 20 publicly held firms. Our results show that stock markets evaluate R&D investments of newly privatized companies less than R&D investments of industry-matched companies.

Item Type: Report / Paper (Working Paper)
Research documents and activity classification: Working Papers > Refereed Working Papers / of international relevance
Divisions: Department of Business and Management
Additional Information: The definitive version of the paper has been published as: Federico Munari and Raffaele Oriani, "Privatization and economic returns to R&D investments", in Industrial and Corporate Change, 2005, vol. 14 (1), pages 61-91.
Uncontrolled Keywords: Privatization, R&D Performance, Market Value, Corporate Restructuring
MIUR Scientific Area: Area 09 - Industrial and Information Engineering > ING-IND/35 Engineering and Management
Deposited by: Maria Teresa Nisticò
Date Deposited: 09 Dec 2010 16:48
Last Modified: 22 Apr 2015 00:13


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