scholarly journals Information Availability in Acquisition Decisions: The Role of Prior Relations and Rival Bidders

2018 ◽  
Vol 31 (3) ◽  
pp. 201-228
Author(s):  
Dieter Smeulders ◽  
Henri C. Dekker ◽  
Alexandra Van den Abbeele
Keyword(s):  
Private Information ◽  
Decision Makers ◽  
Corporate Acquisitions ◽  
Acquisition Performance ◽  
Information Availability ◽  
Needed Information ◽  
Acquiring Firms ◽  
Information Constraints ◽  
The Impact

ABSTRACT This study uses detailed survey data from key decision makers in acquiring firms to test the impact of information availability in corporate acquisitions on pre-acquisition valuation and post-acquisition performance. Our results provide support for the hypothesis that information constraints at the time of target valuation are associated with greater overpayment and weaker post-acquisition performance. Prior ties between firms are found to reduce information constraints to acquiring managers, and thereby reduce overpayment and increase post-acquisition performance. Bids by other potential acquirers are found to signal their private information about the target, providing a substitute for lacking information. This effect holds particularly for non-financial data, which are harder to obtain. These findings suggest that overpayment and underperformance can be prevented not only when an acquirer possesses more information, but also when in the absence of needed information, the presence of rival bidders signals their private information about the value of the target.

scholarly journals A Study on the Impact of R&D Intensity on Business Performance: Evidence from South Korea

2021 ◽  
Vol 7 (2) ◽  
pp. 135
Author(s):  
Hun Park ◽  
Jun-Hwan Park ◽  
Sujin Lee ◽  
Hyuk Hahn
Keyword(s):  
South Korea ◽  
Research And Development ◽  
Business Performance ◽  
Decision Makers ◽  
The Other ◽  
Research Groups ◽  
Innovative Firms ◽  
The Impact ◽  
Knowledge Services

The role of R&D (research and development) intensity on the effect of knowledge services on the business performance of firms has been discussed by using PLS-SEM and PLS-MGA methods. Research groups were divided into two groups, innovative and non-innovative. Respondents were classified into innovative firms if their R&D intensity was over 3% and vice versa. PLS-SEM and PLS-MGA results were compared for two groups and valuable insights were extracted. For innovative firms, knowledge services seemed to be verified and processed by the decision makers and utilized to achieve their business performance. On the other hand, a large number of non-innovative firms seemed to have a stronger tendency to utilize knowledge services directly for their business without sufficient verification by the decision makers.

Intervention and Intransitivity: Public Opinion, Social Choice, and the Use of Military Force Abroad

1995 ◽  
Vol 47 (4) ◽  
pp. 534-554 ◽  
Author(s):  
Kurt Taylor Gaubatz
Keyword(s):  
Foreign Policy ◽  
Public Opinion ◽  
Social Choice ◽  
Public Attitudes ◽  
Decision Makers ◽  
Military Force ◽  
Public Preferences ◽  
Policy Choices ◽  
The Impact

This article argues that the problems identified in the literature on public choice should critically affect our research on public opinion and our understanding of the impact of public opinion on foreign policy. While a robust literature has emerged around social choice issues in political science, there has been remarkably little appreciation for these problems in the literature on public opinion in general and on public opinion and foreign policy in particular. The potential importance of social choice problems for understanding the nature and role of public opinion in foreign policy making is demonstrated through an examination of American public attitudes about military intervention abroad. In particular, drawing on several common descriptions of the underlying dimensionality of public attitudes on major foreign policy issues, it is shown that there may be important intransitivities in the ordering of public preferences at the aggregate level on policy choices such as those considered by American decision makers in the period leading up to the Gulf War. Without new approaches to public-opinion polling that take these problems into consideration, it will be difficult to make credible claims about the role of public opinion in theforeignpolicy process.

The Effects of Goodwill Tax Deductions on the Market for Corporate Acquisitions

2000 ◽  
Vol 22 (s-1) ◽  
pp. 34-50 ◽  
Author(s):  
Benjamin C. Ayers ◽  
Craig E. Lefanowicz ◽  
John R. Robinson
Keyword(s):  
Firm Characteristics ◽  
Target Firm ◽  
Corporate Acquisitions ◽  
Public Firms ◽  
Acquiring Firms ◽  
Tax Deductions ◽  
Tax Benefits ◽  
The Impact ◽  
Tax Deduction ◽  
Purchased Goodwill

We analyze the effect of the tax deduction for goodwill amortization provided by the Omnibus Budget Reconciliation Act of 1993 (OBRA) on the market for corporate acquisitions. We analyze a sample of taxable corporate acquisitions, including acquisitions of subsidiaries, private firms, and public firms, occurring over the period 1990 through 1996. We assess the impact of the goodwill legislation by (1) quantifying the frequency and size of qualifying acquisitions and comparing these acquisitions to nonqualifying acquisitions pre- and post-OBRA and (2) investigating if and how the goodwill amortization deduction influenced the premium paid for qualifying corporate acquisitions. We estimate a regression of acquisition premiums on target-firm characteristics including a proxy for purchased goodwill. We find that acquisitions qualifying for goodwill amortization comprise less than 17 percent of sample taxable corporate acquisitions before OBRA, and this percentage does not increase after the enactment of OBRA. Nonetheless, our regression results indicate that the OBRA goodwill provisions did contribute to a significant increase in acquisition premiums associated with purchased goodwill for qualifying transactions. Thus, rather than operate as a subsidy to acquiring firms, we find that a majority of the tax benefits associated with the goodwill amortization deduction accrues to target-firm shareholders.

scholarly journals Unwanted Conflict? The Analysis of the Impact of Misperception, Beliefs and Psychology of President Nasser at the Outbreak of the Six Day War

2019 ◽  
Vol 01 (02) ◽  
pp. 1950003
Author(s):  
Janko Šćepanović
Keyword(s):  
Decision Making ◽  
Decision Makers ◽  
Structural Explanation ◽  
Defining Moments ◽  
The Us ◽  
History Of ◽  
The Subject ◽  
Six Day War ◽  
The Impact

The Six Day War was one of the most defining moments in the history of the Modern Middle East. This paper seeks to add to the existing scholarship on the subject by going beyond the structural explanation. It gives special attention to the role of unit-level variables like perception, personality, and political psychology of decision-makers. As one scholar noted, threats are not perceived in a vacuum, and are, instead, products of complex synthesis of subjective appraisal of events by the decision-makers. The focus will be on the beliefs and perceptions of the most impactful actor in this crisis: Egyptian President Nasser. As will be argued, his decision-making was shaped by his experience with foreign imperialism, a general misconception of super power intentions, an incorrect analogy between two crucial crisis situations with Israel: the February 1960 Rotem Crisis, and the build-up to the June War in 1967, and especially his complicated relations with the US leaders.

scholarly journals Internal R&D and Acquisition Performance of Chinese Pharmaceutical Firms: Moderation Effect of Acquisition Motive and Corporate Ownership

Processes ◽  
2019 ◽  
Vol 7 (5) ◽  
pp. 292 ◽  
Author(s):  
Qi Yue ◽  
Xing Hua ◽  
Jianyuan Li
Keyword(s):  
Path Dependence ◽  
Corporate Ownership ◽  
Acquisition Performance ◽  
Moderation Effect ◽  
Pharmaceutical Firms ◽  
Key Factor ◽  
Negative Effect ◽  
The Impact ◽  
The Relationship

Although corporate capability has been recognized as a key factor affecting corporate acquisition performance, the role of R&D capability in acquisition performance has not been fully explained. The aim of this paper was to research the impact of internal R&D on acquisition performance according to a sample of 215 acquisitions of Chinese listed pharmaceutical companies from 2012 to 2016. First, it was found that R&D has a significant negative effect on acquisition performance. Furthermore, it was confirmed that the acquisition motive and the ownership of the acquiring firm have a moderating effect on the relationship between R&D and acquisition performance. Compared to non-technical acquisitions, the negative effect of internal R&D on acquisition performance was reduced for technical acquisitions. Compared with non-state-owned-enterprise acquisition, the negative effect of internal R&D on the acquisition performance of state-owned enterprises was weakened. Our study enriches the research of the path dependence theory on the acquisition performance of enterprises and also the interpretation of acquisition performance on the basis of internal and external innovation and the institutional theory.

scholarly journals Public Transfers and Domestic Violence: The Roles of Private Information and Spousal Control

2013 ◽  
Vol 5 (1) ◽  
pp. 179-205 ◽  
Author(s):  
Gustavo J Bobonis ◽  
Melissa González-Brenes ◽  
Roberto Castro
Keyword(s):  
Domestic Violence ◽  
Private Information ◽  
Spousal Abuse ◽  
Decision Makers ◽  
Transfer Programs ◽  
Female Partners ◽  
Public Transfers ◽  
Using Data ◽  
The Impact ◽  
To Receive

We study whether transfer programs in which funds are targeted to women decrease the incidence of spousal abuse. We examine the impact of the Mexican Oportunidades program on spousal abuse rates and threats of violence using data from a specialized survey. Beneficiary women are 40 percent less likely to be victims of physical abuse, but are more likely to receive violent threats with no associated abuse. This evidence is consistent with a model of decision-makers' interactions with asymmetric information in the male partner's gains to marriage, who can then use threats of violence to extract rents from their female partners. (JEL D82, J12, J16, K42, O15, O17)

scholarly journals IMPACT OF DYNAMIC STRATEGIC CAPABILITIES ON STRATEGIC ENTREPRENEURSHIP IN PRESENCE OF OUTSOURCING OF FIVE STARS HOTELS IN JORDAN

2020 ◽  
Vol 21 (2) ◽  
pp. 578-587
Author(s):  
Sulieman Ibraheem Al-Hawary ◽  
Mohammad Sultan Al-Syasneh
Keyword(s):  
Structural Equation ◽  
Training Programs ◽  
Decision Makers ◽  
Strategic Entrepreneurship ◽  
Equation Modelling ◽  
Top Managers ◽  
Strategic Capabilities ◽  
The Impact ◽  
The Relationship

This research aims to investigate whether outsourcing mediates the impact of dynamic strategic capabilities on strategic entrepreneurship. The population of the research consists of top managers in five stars hotels. A sample of 215 respondents were selected for the research in which 186 questionnaires were valid for statistical analysis. Structural equation modelling (SEM) was used to test the hypotheses of the research. The results of the research indicate that outsourcing does not mediate the relationship between dynamic strategic capabilities and strategic entrepreneurship. All the dimensions of dynamic strategic capabilities have a statistical impact on strategic entrepreneurship, while the dynamic strategic capabilities dimension all affect outsourcing except the seizing capability. Based on the research results, managers and decision-makers have to focus on innovation functions by enhancing the role of knowledge management and R&D activities, as well as concentrate on employees training programs.

Do frequent acquirers outperform in cross-border acquisitions? A study of Indian companies

2020 ◽  
Vol 30 (4) ◽  
pp. 491-514
Author(s):  
Samta Jain ◽  
Smita Kashiramka ◽  
P.K. Jain
Keyword(s):  
Operating Performance ◽  
Financial Statements ◽  
Acquisition Performance ◽  
Content Type ◽  
Acquisition Period ◽  
Cross Border ◽  
Acquiring Firms ◽  
The Impact ◽  
First Time

Purpose The purpose of this paper is to examine the impact of cross-border acquisitions (CBAs) on the financial and operating performance of acquiring firms from emerging economies in the long-term; the acquiring firms have been segregated into frequent (multiple) and first-time (single) acquirers based on their prior cross-border experience. The intent is to identify if overseas activities bring over and above advantage to multiple acquirers in terms of enhanced financial synergies and reduced costs, motivating them to engage in sequential international transactions. Design/methodology/approach The paper analyses the impact of CBAs announced and completed during 2004–2013 by Indian companies listed on the NIFTY 500 index. The post-acquisition financial and operating performance of Indian cross-border acquirers has been compared with their pre-acquisition performance. The average performance over three-years immediately preceding the acquisition year constitutes the benchmark for the post-acquisition performance. The post-acquisition period includes a year of integration followed by three successive post-integration years. Therefore, in operational terms, the research period extends from 2001–2017. The long-term performance of frequent (multiple) and first-time (single) Indian acquirers has been investigated comprehensively using a set of 16 financial ratios. The performance has been assessed using the secondary data collected from financial statements of acquiring companies; the financial statements and the list of CBAs by Indian companies have been obtained from Thomson Reuter’s EIKON database. Findings The financial and operating performance of frequent as well as first-time acquirers have depicted a similarly deteriorating trend during the post-acquisition period. These findings indicate that the international expansion of Indian companies is not guided by synergy creation potential and may be pushed by the overconfidence or over-optimism and agency conflicts of managers. This, perhaps, indicates that firms are being imprudent in investing free cash flows available with them. Originality/value The study is the first of its kind. No study, to the best of the authors’ knowledge, has analysed the performance of acquiring firms by segregating them into frequent and first-time acquirers using accounting measures of performance. More so, an extensive analysis of the long-term financial and operating performance of acquiring companies is rare to come across in the extant literature.

The role of boutique financial advisors in mergers and acquisitions

2018 ◽  
Vol 44 (2) ◽  
pp. 212-247 ◽  
Author(s):  
Anna Loyeung
Keyword(s):  
Mergers And Acquisitions ◽  
Information Asymmetry ◽  
Abnormal Returns ◽  
Jel Classification ◽  
Financial Advisors ◽  
Acquisition Performance ◽  
Cumulative Abnormal Returns ◽  
Acquiring Firms ◽  
Target Firms

This study examines the choice of boutique financial advisors in mergers and acquisitions, and the consequences of this choice on deal outcomes and post-acquisition performance. Boutique advisors often specialize in a particular industry and focus exclusively on providing advice in mergers and acquisitions. The results suggest that boutique financial advisors are preferred when the deal is considered complex and when information asymmetry is high. The study finds that the benefits of hiring a boutique advisor flow to both the acquirers and the target firms. Acquiring firms benefit in terms of improved post-merger performance, while target firms benefit in terms of higher completion of value-enhancing deals and positive cumulative abnormal returns. Overall, these results provide support for the growing popularity of boutique financial advisors in the Australian market. JEL classification: G24, G34

The role of blockchain in reducing the impact of barriers to humanitarian supply chain management

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ali Ihsan Ozdemir ◽  
Ismail Erol ◽  
Ilker Murat Ar ◽  
Iskender Peker ◽  
Ali Asgary ◽  
...  
Keyword(s):  
Decision Making ◽  
Supply Chain ◽  
Supply Chain Management ◽  
Decision Aid ◽  
Decision Makers ◽  
Chain Management ◽  
Content Type ◽  
Humanitarian Supply Chain ◽  
The Impact

PurposeThe objective of this study is to investigate the role of blockchain in reducing the impact of barriers to humanitarian supply chain management (HSCM) using a list of blockchain benefits.Design/methodology/approachA decision aid was used to explore the suitability of blockchain in humanitarian supply chains. To achieve that, first, a list of barriers to HSCM was identified. Then, the intuitionistic fuzzy decision-making trial and evaluation laboratory (IF–DEMATEL) method was utilized to determine the relationships and the level of interdependencies among the criteria. Finally, the intuitionistic fuzzyanalytic network process (IF–ANP) technique was employed, as it successfully handles dependencies among the criteria.FindingsThe findings of this study suggest that interorganizational barriers are the most suitable ones, the impacts of which blockchain may alleviate. This study further suggests that trust turned out to be the most significant benefit criterion for the analysis.Research limitations/implicationsThe readers should construe the findings of this study with caution since it was carried out using the data collected from the experts of a particular country. Moreover, the proposed decision aid contemplates a limited set of criteria to assess a possible role of blockchain in overcoming the barriers to HSCM.Practical implicationsThe findings of this study can assist humanitarian supply chain managers to make more judicious assessments on whether they implement the blockchain in humanitarian supply chain operations. Specifically, this research may help decision makers to identify the certain barriers, the impact of which may be reduced by using the blockchain. The findings of this research will also help various decision makers make more rational decisions and allocate their resources more effectively.Originality/valueTo the best of authors’ knowledge, no single study exists to investigate the role of blockchain in reducing the impact of barriers to HSCM using an intuitionistic fuzzy multi-criteria decision-making approach.

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