scholarly journals SETTING THE “RIGHT” GOAL: POST M&A INNOVATION PERFORMANCE AND GOAL ORIENTATION

2020 ◽  
Vol 21 (2) ◽  
pp. 555-565
Author(s):  
Trang Thu Doan
Keyword(s):  
Mergers And Acquisitions ◽  
Goal Orientation ◽  
Performance Outcomes ◽  
Innovation Performance ◽  
Target Size ◽  
Pharmaceutical Firms ◽  
Market Shares ◽  
Breakthrough Drug ◽  
Diminishing Returns ◽  
The Right

Pharmaceutical firms spend billions of dollars to develop the next breakthrough drug and to maintain their market shares. We investigate how pharmaceutical firms use mergers and acquisitions to boost their innovation performance which has been found to result in better performance outcomes. Adding to the recent research on mergers and acquisitions, we found that firms that are explicit with their R&D goal orientation from the beginning of the acquisition journey are more successful in their innovation endeavours than firms with other goal orientation. Further, the firms’ prior acquisition experience appears to aid their innovation performance. However, we found that target size can affect the post-acquisition innovation performance but has diminishing returns as target size increases. Ultimately, our findings suggest that having an explicit R&D goal orientation is really important for a healthy innovation pipeline for pharmaceutical firms.

scholarly journals Company Changing Status and Its Linking to Competitiveness

2015 ◽  
Vol 53 (1) ◽  
pp. 1-17
Author(s):  
Dragana Radenković-Jocić ◽  
Ivan Barun
Keyword(s):  
Mergers And Acquisitions ◽  
Legal Framework ◽  
Decision Makers ◽  
Economic Activities ◽  
Economic Interests ◽  
Eu Legislation ◽  
The Republic ◽  
The Right ◽  
A Company ◽  
The Eu

Abstract The authors present the issues and challenges related to the changes in status of a company and its impact on competitiveness. Status changes of companies, mostly mergers and acquisitions of companies, are one of the ways in which capital owners and management direct economic activities with the aim of maximizing profits. In order to make the right and justified decision, in terms of achieving the economic interests of the company, it is essential to know the laws and regulations in this area. This paper should provide answers on various questions which will be presented to decision makers in every company, considering status changes. Bearing in mind that the question of status changes often associated with an international element, the authors will pay special attention on the EU legislation and current legal framework in the Republic of Serbia.

scholarly journals Development of mergers in the Czech Republic in 2001–2010

2012 ◽  
Vol 60 (4) ◽  
pp. 133-140 ◽  
Author(s):  
Eva Hýblová ◽  
Jaroslav Sedláček ◽  
Zuzana Křížová
Keyword(s):  
Czech Republic ◽  
Mergers And Acquisitions ◽  
Theoretical Research ◽  
Commercial Law ◽  
The Czech Republic ◽  
Economic Practice ◽  
Negative Effect ◽  
The Creation ◽  
Access To Knowledge ◽  
The Right

One of consequences of the substantial market globalization is company transformations, which essentially affect the creation, existence or dissolution of companies; their number has been on the increase in recent years. They are mergers and acquisitions; mergers represent a combination of companies, whereas acquisitions involve selling, purchase or investments of companies. The main reason for a merger is economic growth which can be provided in various ways: these are e.g. decreases in costs, strengthening of a position in the market or access to new markets, decrease in prices and thus gaining new customers, access to knowledge or diversification of risks.The process of a merger is a highly demanding matter which includes the economic view (a choice of the right partner, setting merger objectives, preparation of merger project) and the legal view as the merger involves commercial law, reporting and taxation legislation. Discrepancies in the legal, reporting and taxation procedures in the area can have a negative effect on the process of merger and economic practice. The development of mergers and acquisitions and their success rate is related to the development of the economic and legislative environment. An important aspect is also the successfulness of mergers in the following year which will confirm (or not) the quality of all previous decisions.Research studies conducted in this field focus on mergers with the aim to evaluate procedures during mergers. An important part of research is an analysis of the effect of a merger on the evaluation of the successor company’s performance, changes in capital and capital structure of the entities. The aim of the paper is to publish first partial results in this direction of research. The first part of the research focuses on the creation of a database of companies as this is essential for practical verification of the results of the theoretical research. Due to the fact that there is no similar official statistics in the Czech Republic, its creation needs to be devoted great attention. It is also vital to define the transactions which will be included in the total number so that the results are relevant.

Specialization Agreements under the EEC Competition Rules; A Commentary on Regulation No. 417/85

1987 ◽  
Vol 56 (4) ◽  
pp. 380-413
Author(s):  
Magnus Höög
Keyword(s):  
Individual Decision ◽  
Effective Competition ◽  
Unit Costs ◽  
Market Shares ◽  
Competition Rules ◽  
Individual Decisions ◽  
The Individual ◽  
The Right ◽  
Restrictive Clause ◽  
Considerable Size

AbstractEach case depends on its own facts. Still, the decided cases give considerable guidance to the Commission's approach to granting individual exemptions. The Commission seems to be concerned primarily with the activities of only the parties subject to the specialization agreement, not with unrelated pursuits of corporate relations of the parties94. The Commission also attributes to th especialization agreements an increase of production with a concomittent lowering of unit costs. The exclusivity will thus help to provide the necessary expanded market. The parties to the agreements discussed above are of different sizes, some have very significant shares of the markets in question. A considerable size of the parties, i.e. substantial turnover or large market shares, normally will make it more difficult to obtain an individual exemption. Still, the individual decisions make it clear that even quite substantial undertakings can obtain the benefit of an individual decision under the right circumstances. This leads to the conclusion that size per se is not a concern to the Commission. Of concern is the restrictive clauses in, to some extent, conjunction with the size. Together, the restrictive clause and the considerable size bring the agreement far within the scope of Article 85(1). That the agreement can be granted an individual exemption due to inherent advantages is another side of the coin. A significant example is Re Lightweight Papers. Once the most rigid clauses in the agreement were withdrawn, an exemption was granted no matter the huge market shares in Benelux and France (70% and 80% respectively). The existence of effective competition is the all important element. No matter the size, an exemption can be had if effective competition prevails.

Dimensione e concentrazione dei gruppi bancari italiani nell'ultimo decennio

2009 ◽  
pp. 21-39
Author(s):  
Vittoria Cerasi ◽  
Lisa Crosato
Keyword(s):  
Mergers And Acquisitions ◽  
Size Distribution ◽  
Small Firms ◽  
Credit Rationing ◽  
Substitution Effect ◽  
Jel Classification ◽  
Steady Increase ◽  
Credit Supply ◽  
Market Shares

- The paper analyzes the change in the size distribution of Italian banking groups over the period 1999 to 2007 following a wave of M&As among large banks. Had this process increased the degree of concentration we would have expected greater credit rationing for small firms, given the central role of Italian banks in financing small firms. We measure this change through widely used measures of concentration on branches. First, we observe a steady increase in concentration that can be captured only by looking at the overall size distribution. Other measures do not perceive this change until the year 2007, when the very large banks merged. Second, by focusing on the banking groups that have been active players in M&As we do see a decline in concentration, since smaller players have caught up with the larger ones in terms of rate of size increase. This contrasts with the role of the new entries and the disappearance of banks following mergers, that has increased the dispersion of market shares. The implications are that: i) there is a credit termination risk due to the rise in active players' size, but ii) credit rationing may not occur due to a substitution effect in credit supply from new entries. Keywords: bank market structure; size distribution of banks; measures of concentration; credit rationing of SME; mergers and acquisitions Parole chiave: struttura dell'industria bancaria; distribuzione per dimensione delle banche; misure della concentrazione; razionamento del credito alle PMI; fusioni e acquisizioni Jel Classification: G21 - L11

M&A vs. Greenfield

2018 ◽  
pp. 169-185
Author(s):  
Sana Moid
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Mergers And Acquisitions ◽  
Empirical Evidence ◽  
International Market ◽  
Time Effect ◽  
Entry Modes ◽  
Host Countries ◽  
Bidirectional Relationship ◽  
The Right

The chapter has raised two critically important questions. First, is the M&A boom a one-time effect of privatization, or is it likely to be followed by a rise in Greenfield investment? Second, do these two types of FDI mode have different macroeconomic consequences in terms of aggregate investment and growth? The main purpose of this chapter is to analyze the two entry modes, mergers and acquisitions and Greenfield investment, specifically, and to present a comparative view of the same and how it leads to the economic growth of a nation. It is concluded that one should choose the right mode according to the different situation about the firms in the international market. The present chapter also concludes that Greenfields and M&As do have a positive homogenous effect on growth. Additionally, the enhancement of human capital is an important condition for the host countries to derive the maximum benefits from Greenfields and M&As. Also, there is empirical evidence of a two-way linkage between FDI and growth. However, the bidirectional relationship exists only for the M&A's growth nexus.

scholarly journals The Effect of Uphill and Downhill Slopes on Weight Transfer, Alignment, and Shot Outcome in Golf

2018 ◽  
Vol 34 (5) ◽  
pp. 361-368 ◽  
Author(s):  
Glen M. Blenkinsop ◽  
Ying Liang ◽  
Nicholas J. Gallimore ◽  
Michael J. Hiley
Keyword(s):  
Center Of Pressure ◽  
Performance Outcomes ◽  
Computer Assisted ◽  
Ball Speed ◽  
Transfer Alignment ◽  
3 Dimensional ◽  
The Right ◽  
Weight Transfer ◽  
Kinetics Of ◽  
Kinematics And Kinetics

The aim of the study was to examine changes in weight transfer, alignment, and shot outcome during golf shots from flat, uphill, and downhill slopes. Twelve elite male golfers hit 30 shots with a 6-iron from a computer-assisted rehabilitation environment used to create 5° slopes while collecting 3-dimensional kinematics and kinetics of the swing. A launch monitor measured performance outcomes. A shift in the center of pressure was found throughout the swing when performed on a slope, with the mean position moving approximately 9% closer to the lower foot. The golfers attempted to remain perpendicular to the slope, resulting in weight transfer toward the lower foot. The golfers adopted a wider stance in the sloped conditions and moved the ball toward the higher foot at address. Ball speed was not significantly affected by the slope, but launch angle and ball spin were. As the coaching literature predicted, golfers were more likely to hit shots to the left from an uphill slope and to the right from a downhill slope. No consistent compensatory adjustments in alignment at address or azimuth were found, with the change in final shot dispersion resulting from the lateral spin of the ball.

Effect of science in the relation between firms' technological diversification and innovation performance

2020 ◽  
Vol 6 (1) ◽  
pp. 7
Author(s):  
Alessia Donato
Keyword(s):  
Scientific Knowledge ◽  
Performance Outcomes ◽  
Innovation Performance ◽  
The Other ◽  
Technological Diversification ◽  
Relationship Of ◽  
The Relationship ◽  
Patented Inventions

Several studies have analyzed the relationship between the firms’ technological diversification and the innovation performance outcomes. We use information coming from patents portfolio of a sample of firms that operate in a nanotechnology sector and analyze the effect, in this relationship, of the use of scientific knowledge in the development of patented inventions. We find, firstly, that the trend of the quality of innovation with the technological diversification of a firm appears similar to a Gaussian with positive asymmetry. Secondly, we find that with the increase in the percentage of the used science by year, in one side, firms appear to obtain the maximum impact of the innovation, in average, with a less technological diversification in the patent’s portfolio and, in the other side, innovations with more impact are obtained in average.

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