Technological Acquisitions: The Impact of Innovation on Stock Performance

This paper investigates technological acquisitions and innovation’s impact on US acquiring firms’ stock performance between 2012 and 2016. Firms pursue technological acquisitions with the rationale of creating value, improving market share, and achieving economies of scale. Acquisitions have not always yielded the desired results. Overall, acquirers’ long-run abnormal returns tend to be negative. This study suggests that innovation positively impacts stock performance around the announcement date and one year after the acquisition. The 3-year post-acquisition analysis finds that technological acquisitions do not affect acquiring companies’ stock performance. A bump in the one-year post-acquisition performance dissipates over the three-year horizon

Impacts of Tax Incentive Programs on Mineral Exploration Expenditures in Canada: An Empirical Analysis

From a government perspective, exploration investment is important for future global competitiveness in mineral industries. Canada provides an example of a nation that promotes exploration and is a major target of companies' exploration budgets. This paper analyzes impacts of the government policies and tax incentive programs on exploration spending by mining companies in Canada. The study is performed using econometric modeling of the Canadian exploration expenditures over the period of 1969-2008. Our analysis confirms that the tax incentive programs were effective in increase of exploration spending by the junior mining companies