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Journal of Applied Sciences
  Year: 2014 | Volume: 14 | Issue: 2 | Page No.: 101-111
DOI: 10.3923/jas.2014.101.111
 
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Complementary Technology and Long-term Shareholder Value of Acquiring Firm in Technology Acquisitions

Ren He and Tienan Wang

Abstract:
Prior research on technology acquisitions has not examined the effect of acquiring complementary technology on long-term shareholder value of acquiring firms and the mechanisms of value creation of complementary technology acquired. And most empirical results in previous technology acquisitions are based on data in the USA and UK from mid-1980s to mid-1990s. There is little evidence from emerging market. This study develops a model of complementary technology and long-term shareholder value of acquiring firms in technology related acquisitions that considers the factors associated with value creation of complementary technology. The model is tested using a sample of technology acquisitions from high-tech industries in China. The study finds that complementary technology acquired creates more value for shareholder of acquiring firm than similar technology does in technology acquisitions in the long term. And the percentage of target firm acquired and the ratio of technical employees of acquiring firm have positive moderating effects on the relationship between complementary technology and long-term shareholder value of acquiring firm. The results of the study suggest that firms should increase their technology integration capability to make complementary technology acquired creates value for acquiring firms.
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  •    Similar Technology, Complementary Technology and Long-term Shareholder Value of Acquiring Firm in Technology Acquisitions: Evidence from High-tech Industries in China
How to cite this article:

Ren He and Tienan Wang, 2014. Complementary Technology and Long-term Shareholder Value of Acquiring Firm in Technology Acquisitions. Journal of Applied Sciences, 14: 101-111.

DOI: 10.3923/jas.2014.101.111

URL: https://scialert.net/abstract/?doi=jas.2014.101.111

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