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→LBO Innovation
=Variable List=
==LBO Innovation==
===Compustat===
===Non-Compustat===
*secondary exit - an LBO backed firm subsequently sold to another private equity fund
*IPO - an lbo backed firm subsequently going public
*trade sale - an lbo backed firm sbusequently being acquired by a strategic buyer
*bankruptcy - an lbo backed firm subsequently filing for bankruptcy
*event year - indicator variables that equal one for the given year in event time (the base year is year 0)
*post - an indicator variable that equals one for event years 1 and forward
*post plus one - an indicator variable that equals one for event years 2 and forward
*share of firm's preinvestment patents in class - the fraction of the firms' pretransaction patents that are in the same industry class
*change in firm's patents in class - an indicator for whether the difference in the share of patents in the class between the pre- and posttransaction periods is positive
*post x share - an interaction between post and share of firm's pre-investment patents in class
*post x change - an interaction between post and change in firm's patents in class
*Innovation
**R&D Spending
**R&D Focus (types, i.e. basic, applied, or developmental)
**radical product innovation
**product modification
**commercialization
**use of external R&D sources
**improving R&D staff quality
**increasing R&D staff size
*Venturing
**percent of revenue from new businesses or industries which showed a company's ability to expand operations to achieve profitability
**the number of new businesses the company has entered that showed an increase in the emphasis on redefining the company's business concept
**the number of new market segments served by the company that gauged the increase in the scope of operations
*company performance
**employee productivity
**sales-to-beginning assets, shows the company's ability to use its assets effectively
**return on investment
**earnings before interest and tax to assets ratio
*control variables
**technological opportunities, size, age, and level of debt
*outcome variables
**patent applications
**patent applications weighted by forward citations i.e. changes in innovation stocks over time
*conditioning variables
**firm size (the log of sales)
**labour productivity (the log of sales per employee)
**exporting (an exporter dummy)
**skill intensity (the log of the average wage)
**debt (liabilities divided by equity, i.e. leverage)
**profitability (profit divided by sales)
**age (log firm age)
*Product innovations
*Process innovations
*Organizational innovations
*marketing innovations
*patents and other protection methods
*factors hampering innovation activities
*Patent citations used as proxy for quality (which might not be optimal)
*They do adjust for overall average of non-LBO firms
*Uses Seagate as a case study
==LBO==
Activity and performance:
