The study investigates the role of minority equity purchases on the innovation activities of the US firms. We provide evidence of an increased innovation activity following minority equity purchases targeting firms with a small size patent portfolio prior to acquisition. Using a hand collected...

Immigrants in economies with a dominant native language exhibit substantial heterogeneities in language acquisition of the majority language. We model partial equilibrium language acquisition as an equilibrium phenomenon. We consider an environment where heterogeneous agents from various...

We examine the impact of CEOs’ ethnic cultural identity (ECI) on cross-border acquisitions. Regardless of the immigration time of CEOs’ ancestors to the US, acquirers are more likely to bid for a target in their CEOs’ ancestry country of origin. The CEO ECI does not significantly affect...

Previous work on exit in declining industries has neglected mergers. We examine a simple model that predicts which declining industries experience horizontal mergers. Mergers are more likely if 1) market concentration is high; 2) the inverse demand curve is steep at high levels of output and...