Domestic and Crossborder M&A output Method

Hi all,

Currently I am struggling with getting the right method for the following research question:

Do cross-border acquisitions lead to higher innovation output than domestic acquisitions?

In order to answer this I have assembled the right M&A data and innovation data of firms.

But, what kind of methodology to use as there is clearly difficulty in answering this question. In my knowledge the research question above asks for a DiD regression where domestic and cross-border acquisitions are treated as group-specific trends. On the other hand this seems to me as an inadequate way and maybe a panel data set with dummy variables seems the better way.

In the end I want to know if a cross-border acquisition has influence on innovation output.

Hope that you can help me!

Either way, thanks!:)


TS Contributor
Welcome to TalkStats,

M&A = Mergers & Acquisitions
DiD regression = Difference in differences regression

It helps to explain your acronyms. Don't assume that everyone understands field-specific acronyms or methods not common to other disciplines or used under another name.