A reverse merger allows a private company to assume the current reporting status of another company that is public. This can be done quickly, without fundraising, road show, underwriter, substantial ownership dilution, or great expense. Private firms that go public via reverse merger are often...

We explore the innovation of corporations issuing PIPEs (Private Investments in Public Equity) that are financed by other corporations. PIPE issuers exhibit a positive relation between their future innovation activity and the innovation capability of the corporate investor. This relation...

Theory shows that ownership stakes between firms can mitigate hold-up costs that wouldotherwise impede interfirm collaboration. We construct a model of the pharmaceutical industrythat predicts hold-up costs are an inverted U-shaped function of the collaborative drug’s likelihoodof approval....