Do Antitakeover Laws Affect Technological Change? International Evidence
by Ross Levine
Does removing impediments to corporate takeovers spur, slow, or have no effect on technological innovation? This research will provide the first international evaluation of whether and how antitakeover laws affect innovation. The research will use data on changes in laws governing corporate takeovers over the period from 1976 through 2006 for 97 countries. The research will use data on patents and citations to those patents to measure innovation. Preliminary results suggest that reducing legal and regulatory barriers to takeovers accelerates innovation.