scholarly journals The Impact of Mergers and Acquisitions and Sustainability on Company Performance in the Pharmaceutical Sector

2021 ◽  
Vol 13 (12) ◽  
pp. 6525
Author(s):  
Diana Marieta Mihaiu ◽  
Radu-Alexandru Șerban ◽  
Alin Opreana ◽  
Mihai Țichindelean ◽  
Vasile Brătian ◽  
...  
Keyword(s):  
Stock Market ◽  
Mergers And Acquisitions ◽  
Performance Improvement ◽  
Score Function ◽  
Pharmaceutical Companies ◽  
Company Performance ◽  
Direct Impact ◽  
Pharmaceutical Sector ◽  
Financial Measures ◽  
The Impact

The primary goal of this study was to determine the impact of mergers and acquisitions (M&A) and the environmental, social, and governance (ESG) sustainability scores of companies. In this regard, efforts to measure and analyze the evolution of a company’s performance, taking into account financial and non-financial measures using a score function, are adapted to the pharmaceutical sector. The sample consisted of 100 leading pharmaceutical companies, ranked by stock market capitalization, who registered 30% (n = 492) of the total M&A transactions over the study period (2010–2020). There was a direct and positive link between the M&A process and the evolution of company performance. The ESG score, as an indicator for measuring sustainability, has a positive and direct impact on company performance, indicating that a high ESG score determines an increase in company performance. A similar impact is identified for companies involved in M&A processes, meaning that companies in the pharmaceutical sector tend to register a performance improvement.

scholarly journals Loss aversion, overconfidence of investors and their impact on market performance evidence from the US stock markets

2020 ◽  
Vol 25 (50) ◽  
pp. 451-478
Author(s):  
Ahmed Bouteska ◽  
Boutheina Regaieg
Keyword(s):  
Stock Market ◽  
Economic Performance ◽  
Loss Aversion ◽  
Market Performance ◽  
Ordinary Least Squares ◽  
Company Performance ◽  
Service Firms ◽  
Content Type ◽  
The Us ◽  
The Impact

Purpose The current study aims to investigate the impacts of two behavioral biases, namely, loss aversion and overconfidence on the performance of US companies. First, the impact of loss aversion on the economic performance of companies was assessed. Second, the impact of overconfidence on market performance was discussed. Design/methodology/approach This study used around 6,777 quarterly observations on the population of US-insured industrial and services companies over the 2006-2016 period. Ordinary least squares (OLS) regression in two panel data models were used to test the hypotheses formulated for the study. Findings It was documented that the loss-aversion bias negatively affects the economic performance of companies and this is achieved for both sectors. In contrast, the findings suggest that overconfidence positively affects market performance of industrial firms but negatively affects market performance in service firms. Further robust evidence was found that overconfidence bias seems to be dominant, and hence, investors may tend to be more overconfident rather than more loss-averse. Originality/value This research can be extended by focusing on the following question: What is the impact of the contradictory (positive and negative) effects of an investor's loss aversion and overconfidence on the US company performance in case of realization of a stock market crisis or stock market crash?

scholarly journals Determinants of Merger and Acquisition: An Indian Pharmaceutical Industry Perspective

2019 ◽  
Vol 8 (2S11) ◽  
pp. 3081-3088
Keyword(s):  
Pharmaceutical Industry ◽  
Mergers And Acquisitions ◽  
Competitive Advantage ◽  
Secondary Data ◽  
Merger And Acquisition ◽  
Company Performance ◽  
Compulsory Licensing ◽  
The Impact ◽  
Negative Factors ◽  
Indian Pharmaceutical Industry

Mergers and acquisitions (M&A) have gained prominence across the globe as a way of gaining competitive advantage and boosting the profit of the companies. The Indian pharmaceutical industry has readily embraced M&As in the recent times and has witnessed a number of profitable deals materialize, while some indeed failed. The success of M&As is contingent upon a variety of factors and eventually has a bearing on how the acquiring and target companies perform. This study intended to identify the various factors that either lead to or impede M&As and to measure their impact on company performance. The factors that motivate and discourage M&As were identified and the importance of factors such as deal size and compulsory licensing requirement in M&A success was assessed and the impact of the all these factors on the performance of the companies was assessed using both primary and secondary data. The encouraging and discouraging aspects of M&A were found to impact company performance significantly, so did the deal size and compulsory licensing requirement. The findings implied that the success of M&As depends on a variety of positive and negative factors and the participating companies need to balance these factors judiciously in order to obtain realistic profits from M&As

The Effects of Mergers and Acquisitions on Taiwanese Corporations

2000 ◽  
Vol 03 (02) ◽  
pp. 183-199 ◽  
Author(s):  
Tsung-Ming Yeh ◽  
Yasuo Hoshino
Keyword(s):  
Stock Market ◽  
Mergers And Acquisitions ◽  
Stock Returns ◽  
Stock Prices ◽  
Corporate Performance ◽  
Accounting Performance ◽  
Acquiring Firms ◽  
The Impact

This paper investigated the impact of M&As on both the acquiring firms' stock prices and corporate performance by using evidence from 20 Taiwanese corporations. Our data suggest that the accounting performance of Taiwanese acquiring firms failed to meet the stock market's expectation of future improvements in the operations of the acquiring firms. The stock market reacted in favor of the announcements of M&As, however, there is a downward change in the acquiring firms' profitability from premerger to postmerger periods. However we do not find any significant correlation between stock returns and the change in accounting performance, which is different from some previous studies.

scholarly journals CURRENT TRENDS IN INTERNATIONAL MERGERS AND ACQUISITIONS OF PHARMACEUTICAL COMPANIES

2021 ◽  
Vol 7 (2) ◽  
pp. 97-108
Author(s):  
Yana S. Sinitsova
Keyword(s):  
Pharmaceutical Industry ◽  
Mergers And Acquisitions ◽  
Statistical Data ◽  
Comprehensive Approach ◽  
Pharmaceutical Companies ◽  
High Significance ◽  
Geographical Structure ◽  
Current Trends ◽  
International Mergers ◽  
The Impact

The article analyzes the results of mergers and acquisitions of global pharmaceutical companies and  their  impact  on  the  global  pharmaceutical  industry.  The  relevance  of  this  research is determined by the high significance of mergers and acquisitions of global pharmaceutical companies on the global pharmaceutical industry and market. A comprehensive approach is used to assess the impact of mergers and acquisitions of pharmaceutical companies on the global pharmaceutical  industry.  The  article  presents  statistical  data  on  the  volume  and  number  of venture  investments  in  the  pharmaceutical  and  biotechnological  industries.  The  reasons  for mergers and acquisitions by pharmaceutical companies, as well as the dynamics of the activity of such transactions, are determined. The geographical structure of stock transactions and the total number of mergers and acquisitions of pharmaceutical companies are presented, as well as examples of the largest mergers and acquisitions of pharmaceutical companies.

scholarly journals THE COVID-19 PANDEMIC AND INDIAN PHARMACEUTICAL COMPANIES: AN EVENT STUDY ANALYSIS

2021 ◽  
Vol 24 ◽  
pp. 1-14
Author(s):  
Chinmaya Behera ◽  
Badri Narayan Rath
Keyword(s):  
Stock Returns ◽  
Event Study ◽  
Alternative Model ◽  
Pharmaceutical Companies ◽  
Study Analysis ◽  
Pharmaceutical Sector ◽  
Firm Level ◽  
Study Methodology ◽  
The Impact ◽  
Event Study Methodology

Although there is a plethora of studies which examine the impact of the COVID-19 pandemic on India’s financial sector, we contribute by investigating the effect of the ongoing COVID-19 pandemic on stock returns of Indian pharmaceutical companies. By employing an event study methodology, our results indicate that the average returns of the pharmaceutical sector are positive during the COVID-19 phase although mixed evidence is found at the firm level. This finding is also robust to alternative model specifications.    

The Critical Role of TQM, JIT, and TPM in the Revisiting World Class Manufacturing and Manufacturing Excellence

2014 ◽  
Vol 660 ◽  
pp. 959-965 ◽  
Author(s):  
Lukman Sukarma
Keyword(s):  
Performance Improvement ◽  
Production System ◽  
Critical Role ◽  
Company Performance ◽  
Integrated Production ◽  
Comprehensive Survey ◽  
World Class ◽  
The Impact ◽  
World Class Manufacturing

Based on a comprehensive survey of existing manufacturing literature, the importance of the integrated production system in achieving manufacturing excellence is elaborated. In doing so, world-class manufacturing and manufacturing excellence are revisited. Four models of WCM and three concepts of ME are reviewed. Each element, which is considered to constitute WCM, is also discussed in detail. The impact of TQM, JIT, and TPM, individually and concurrently on company performance is exhaustively reviewed. Previous models of the integrated models are also compared. The existence of synergy in the application of TQM and JIT leading to additional performance improvement is also demonstrated. But the incorporation of TPM in the integrated production system has never been empirically investigated. Subsequent papers based on this study will present empirical evidence for the effectiveness of the integrated model.

scholarly journals Impact of Cross-border Mergers and Acquisitions on the Development of Chinese Pharmaceutical Exports and Imports

2019 ◽  
Vol 12 (6) ◽  
pp. 170-187
Author(s):  
O. A. Klochko ◽  
A. V. Chugunova
Keyword(s):  
Mergers And Acquisitions ◽  
Foreign Trade ◽  
Growth Rates ◽  
Industrial Development ◽  
Pharmaceutical Products ◽  
Pharmaceutical Companies ◽  
Foreign Markets ◽  
Cross Border ◽  
Pharmaceutical Trade ◽  
The Impact

The article is devoted to the research into the impact of cross-border mergers and acquisitions, conducted by international pharmaceutical companies in China, on Chinese participation in international pharmaceutical trade. Relevance of the study resides in the importance of mergers and acquisitions as instruments that are widely used in a foreign markets penetration process and that lead to the enhancement of intercorporate trade, thus significantly influencing country’s foreign trade. International pharmaceutical companies expanded their operations in Chinese market during the last two decades as a result of the market liberalization. Mergers and acquisitions, conducted by international players, have directly or indirectly led to higher growth rates of Chinese foreign trade in pharmaceutical products, to geographic diversification of pharmaceutical exports and to an increase in deliveries from developed countries. China more than doubled its share in global exports of pharmaceutical products and almost quadrupled its share as an importer of pharmaceuticals. The specific features of Chinese pharmaceutical trade are high growth rates in imports and imports’ significant excess over exports. Substantial proportion of Chinese imports is constituent by pharmaceutical components, that are needed to ensure production of high quality pharmaceuticals in China. Mergers and acquisitions play important role in this process and cause changes in geographical structure of imports. Seven biggest suppling countries, which hold more than two thirds of imports to China, represent the countries of origin of companies that are actively involved into mergers and acquisitions in Chinese pharmaceutical market. The research results can be used by public regulatory authorities for the elaboration of industrial development policies through stimulating or deterring foreign direct investments. Research can be of use to pharmaceutical companies in formulating competition strategies for domestic and foreign markets. 

scholarly journals The Impact of Risk Anomalies on the Pharmaceutical Sector of the Indian Stock Market. A comparative analysis between pharmaceutical, FMCG and IT companies

2020 ◽  
Vol 71 (2) ◽  
pp. 58-63
Author(s):  
Prakash Pinto ◽  
Iqbal Thonse Hawaldar ◽  
Guruprasad Kemminje ◽  
Babitha Rohit ◽  
Cristi Marcel Spulbar ◽  
...  
Keyword(s):  
Comparative Analysis ◽  
Stock Market ◽  
Research Study ◽  
Stock Exchange ◽  
Pharmaceutical Sector ◽  
Research Article ◽  
Fast Moving Consumer Goods ◽  
Indian Stock Market ◽  
The Impact ◽  
It Risk

The main purpose of this research article is to provide a comparative framework on various implications of risk anomalies on Indian stock market based on an empirical study for the following sectors: Pharmaceutical, Fast-Moving Consumer Goods (FMCG) and IT. Risk anomaly is a notable anomaly because it is continual and all-inclusive. This research study aims to examine the existence of risk anomaly in the National Stock Exchange, India, and in particular providing a comparative analysis on the behavior of the pharmaceutical sector in India.

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