The Impact of M&A on R&D of Electric Utilities based on Heckman Two-stage Model

Jiming Tian, Tao Shen, Xin Wang, Zhichong Pan

2022

Abstract

Electricity industry in China and abroad is undergoing profound changes, which affect the behaviours of electric utilities in many different ways. This research empirically investigates how mergers and acquisitions (M&As) between electric utilities affect their incentives to undertake research and development (R&D) investment. The paper explores an unbalanced panel data set consisting of 125 electric utilities in the United States during 20 years sample period from 1994 to 2013. The decision to undertake R&D investment is modelled as a two-stage process. In the first stage, the electric utilities decide whether to invest in R&D at all; in the second step, the utilities will decide the amount of R&D investment. Heckman two-stage method is used for estimation. The results show that M&As have some impact on R&D investment by the electric distribution utilities.

Paper Citation

in Harvard Style

Tian J., Shen T., Wang X. and Pan Z. (2022). The Impact of M&A on R&D of Electric Utilities based on Heckman Two-stage Model. In Proceedings of the International Conference on Big Data Economy and Digital Management - Volume 1: BDEDM, ISBN 978-989-758-593-7, pages 688-694. DOI: 10.5220/0011218400003440

in Bibtex Style

@conference{bdedm22,
author={Jiming Tian and Tao Shen and Xin Wang and Zhichong Pan},
title={The Impact of M&A on R&D of Electric Utilities based on Heckman Two-stage Model},
booktitle={Proceedings of the International Conference on Big Data Economy and Digital Management - Volume 1: BDEDM,},
year={2022},
pages={688-694},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0011218400003440},
isbn={978-989-758-593-7},
}

in EndNote Style

TY - CONF

JO - Proceedings of the International Conference on Big Data Economy and Digital Management - Volume 1: BDEDM,
TI - The Impact of M&A on R&D of Electric Utilities based on Heckman Two-stage Model
SN - 978-989-758-593-7
AU - Tian J.
AU - Shen T.
AU - Wang X.
AU - Pan Z.
PY - 2022
SP - 688
EP - 694
DO - 10.5220/0011218400003440