Privatization and Economic Returns to R & D Investments

Posted: 29 Feb 2008

See all articles by Federico Munari

Federico Munari

University of Bologna - Department of Management

Raffaele Oriani

Luiss Guido Carli University

Date Written: February 2005

Abstract

This article analyzes the impact of privatization on firms` expected R & D economic performance. We examine the effect of R & D investments on market value for a panel of privatized firms in Western Europe matched with different panels of privately owned firms. The results show that the effect is systematically higher for privately owned firms as compared to privatized firms. Moreover, the market valuation of R & D investments increases over time for privatized firms. This evidence is consistent with the hypothesis that organizational inertia defers the impact of privatizion on firms` R & D performance.

Suggested Citation

Munari, Federico and Oriani, Raffaele, Privatization and Economic Returns to R & D Investments (February 2005). Industrial and Corporate Change, Vol. 14, Issue 1, pp. 61-91, 2005, Available at SSRN: https://ssrn.com/abstract=914648

Federico Munari (Contact Author)

University of Bologna - Department of Management ( email )

Piazza Scaravilli 1
Bologna, Bologna 40126
ITALY
051-2093954 (Phone)
051-2093949 (Fax)

Raffaele Oriani

Luiss Guido Carli University ( email )

Viale Romania, 32
Rome, 00196
Italy
+390685225908 (Phone)

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