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===Compustat===This project supported [[Leveraged Buyout Innovation (Academic Paper)]]
*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 https://docs.google.com/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/rice.edu/spreadsheets/d/1OwcNDYXo_TefwPjUFHo5xVaBpOH4tmTnZmyBsuQRb_s/edit?usp=sharing
*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)Abridged list:
*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:*FCF/TR “Free cash flows” (1) divided by turnover*TRGR Turnover growth*Tax/TR Income tax divided by turnover*ROIC Return On Invested Capital = (operating income before taxes + interest expenses) divided by “economic assets” (WCR + fixed Assets (net))*ROE Return On Equity = Net income divided by (stockholders equity - net income) Business Risk:*CVTRGR Coefficient of variation of turnover growth computed on the 3 yearperiod preceding the deal*CVROIC Coefficient of variation of ROIC computed on the 3 year-period preceding the deal*CVROE Coefficient of variation of ROE computed on the 3 year-period preceding the deal*CVFCF/TR Coefficient of variation of FCF/turnover computed on the 3 yearperiod preceding the deal Composition and characteristics of assets and financial structure:*TanA/TA Tangible assets (net) divided by total assets (net)*LEV Total debt divided by stockholders equity*RET/TA Retained earnings/Total assets*NC/TA Net cash/Total assets*WCR/TR Working Capital Requirement divided by turnover*FA/TA Financial assets (net)/Total Assets (net)*TA/TAg Total Assets (net)/Total assets (gross) Variables: *Target-firm size (SIZE)*Target-firm liquidity (LIQUIDITY)*Asset sales subsequent to the lbo (ASSETSALE)*Target-firm return on assets (ROA)*Target-Division or full firm growth opportunities (GROWTH and MRKTBOOK)*target-firm earnings variability (EARNINGVAR)*free cash flow ratio (FREECASH)?*acquisition premium paid (PREMIUM) *trend variable (TIMEDUM) Dependent variables: *PBANKL the percentage breakdown of the total buyout financing package that is represented by senior bank debt*PDEBTSEC: the percentage of the total package that consists of issues of junior debt securities*PPREFER: the percentage of the total package represented by issues of preferred stock*PCOMMON: the percentage of the total that consists of common equity provided by the buyout group*PCASH: the percentage of the total that comes from the use of the target firm's existing cash and marketable securities balancespreferred equity*CF = INC-TAX-INTEXP-PFDDIV-COMDIVsenior debt*CF/EQUITYjunior debt*Lagged SALESGR*TAX/EQUITY*FOOTSTEPS (=1 if competing bid or takeover speculation in WSJ) ==Innovation==cash
no edit summary
{{Project|Has project output=Variable ListContent|Has sponsor=McNair Center|Has title=Creating a Guide to Patent Litigation|Has owner=LBO Innovation=Marcela Interiano,Brian Ayash|Has project status=Complete}}
===Non-Compustat==Variable List=
Complete list:
LBO factors/incidence:
*Log assets
*R&D
*Operating income
*Sales
*Tax
*Liquidity
*ROA
*ROIC
*Growth
*Book val per share
*Earnings variability
*Takeover speculation/competing bid
*Tobin's Q
*Industry dummies (probably 2 digit NAICS)
=LBO Effects on Innovation Papers=
Final sample consists of 6398 patents from 472 firms granted from 1984 through may 2007.
Buyouts of corporate divisions are most common, followed by private-to-private deals (investments in independent unquoted entities), secondary deals (firms that were already owned by another private equity investor), then public-to-private deals
Robustness Checks:
*Concern one: Private equity investments for which there was already an existing investor, patents may be double-counted. Employs these patents only the first time they appear then drops them. Results are little changed
*Concern two: Only measures citation count during the 3 years after the award. Using a longer window increases accuracy but decreases sample size. Repeats the analysis through the end of the second calendar year after the patent grant and after the fourth year and finds that results are quantitatively similar.
*Concert three: In divisional buyouts corporate parents may retain best patents and only give low quality patents to the PE backed division. This may lead to an apparent increase in quality in the patents applied for after the award. Addresses this issue by using the longer window for patents above and by rerunning cross tabulations and regressions with divisional buyouts excluded from the sample. Key results are little changed by this shift.
Variables:
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