Hi everyone, I have a question and I hope you can help me with it! I am researching the effect of acquisition activity on firm innovation. I want to measure the difference between pre-acquisition innovation and post-acquisition innovation using a DID estimator, in which I specify the pre-acquisition and post-acquisition period.
The time period spans 2008-2015 and most firms have performed more than one acquisition in these years or even more than one during one year. It makes specification of the DID estimator somewhat hard. I was wondering if there is a way to perform this study using all those acquisitions or if it's better to take e.g. one acquisition over this timespan and measure the pre- and post-acquisition innovation levels for this.
Hope to hear from you!
The time period spans 2008-2015 and most firms have performed more than one acquisition in these years or even more than one during one year. It makes specification of the DID estimator somewhat hard. I was wondering if there is a way to perform this study using all those acquisitions or if it's better to take e.g. one acquisition over this timespan and measure the pre- and post-acquisition innovation levels for this.
Hope to hear from you!