scholarly journals The Impact of Experience on Private Target Acquisition in High-Technology Industries

2019 ◽  
Vol 11 (6) ◽  
pp. 1603 ◽  
Author(s):  
Yuri Jo ◽  
Jungho Kim
Keyword(s):  
Mergers And Acquisitions ◽  
Information Asymmetry ◽  
Value Creation ◽  
High Technology ◽  
Target Acquisition ◽  
Listed Firms ◽  
Positive Effects ◽  
The Impact ◽  
Technology Industries ◽  
High Technology Industries

This paper investigates the impact of an acquirer’s experience on the acquisition of private firms (i.e., private target acquisition) in high-technology industries by analyzing a dataset of NASDAQ-listed firms operating in information technology (IT) industries. Specifically, this paper examines whether two types of experience (i.e., early venture capital (VC)-backed experience and prior mergers and acquisitions (M&A) experience) matter to the acquisition. We find that both types of experience have positive effects on private target acquisition, while only prior M&A experience positively influences public target acquisition, implying that early VC-backed experience is effective in mitigating information asymmetry related to private target acquisition and exploring opportunities for value creation. We also find that an acquirer’s growth performance and absorptive capacity prior to the acquisition enhance the positive effects of the experiences on private target acquisition.

Technological Disruptions, GVCs, and Industrial Policy

2020 ◽  
pp. 484-504
Author(s):  
David Bailey ◽  
Lisa De Propris
Keyword(s):  
Industrial Policy ◽  
New Technologies ◽  
High Technology ◽  
Value Chains ◽  
Innovation Activities ◽  
Advanced Economies ◽  
Start Ups ◽  
The Impact ◽  
Technology Industries ◽  
High Technology Industries

This chapter examines the impact of technological change on global value chains (GVCs) and what initiatives and instruments governments in advanced economies can deploy to support firms and people during the transition. Drawing on an emerging debate on de-globalization, we discuss how global production is slowly shifting from being organized in GVCs to continental platforms with shorter and geographically closer relationships as firms seek to co-locate manufacturing and innovation activities. This offers regions and places the opportunity to upgrade and transform their economies and thereby to anchor high-technology industries, leveraging industrial legacy with frontier technologies. We will discuss the implications for a transformative place-based industrial policy that aims to connect embedded industries to new technologies; to repopulate embedded industries with new firms and start-ups, and to use regulation and procurement to create new markets and allow exploration.

Profitability of Mergers and Acquisitions: Evidence from India’s High-Tech Industries

2018 ◽  
Vol 66 (3-4) ◽  
pp. 223-249
Author(s):  
S. Shekhar Singh
Keyword(s):  
Mergers And Acquisitions ◽  
High Technology ◽  
Overwhelming Majority ◽  
The Other ◽  
High Tech ◽  
Difference In Differences ◽  
Technology Industries ◽  
High Technology Industries ◽  
Better Than ◽  
Non Parametric

This article analyses the post-merger profitability of acquirers for a sample of mergers and acquisitions (M&As) that did take place during the period 1999–2011 in certain high technology industries in India. Taking the performance of median firm(s) from the three-digit industry category of acquirer(s) as the benchmark, this study deploys difference-in-differences (DID) method to evaluate acquirer performance using both parametric and non-parametric tests. Results of the analysis show that an overwhelming majority of acquirers have performed better than the benchmark firms in their respective industries. Interaction of acquirer characteristics such as size, types of M&As undertaken and industry origin, among others, impacts the outcome. Horizontal M&As are more successful than the other types. Smaller firms, being more inclined to go for horizontal M&As, have fared better than their larger counterparts. Similarly, firms from the drugs & pharmaceuticals and electronics industries have performed better than those from chemicals, electrical and non-electrical industries. Here too, better performing industries have higher sprinkling of horizontal M&As.

scholarly journals The Evolution of Games of Innovation in Regulated Complex Industries: The Case of Aviation Training

2004 ◽  
Author(s):  
Michael Kamel ◽  
Roger Miller
Keyword(s):  
Value Creation ◽  
Government Regulation ◽  
High Technology ◽  
Coherent System ◽  
Theoretical Frameworks ◽  
Regulatory Frameworks ◽  
Simulation And Training ◽  
Technology Industries ◽  
High Technology Industries ◽  
And Training

The study of industrial games of innovation is often associated with dominant theories representing various generic forms of organizational design and dynamics. The dominant theories in this area were traditionally Schumpeter’s destructive innovation, Porter’s five-force competitive analysis and Nalebuff’s value net. Other frameworks for analyzing industrial behavior include game theory and its derivative innovation games theory. For regulated high-technology industries, theoretical frameworks that do not account for interfirm coordination are often insufficient to understand or predict the industry behavior. Innovation in the aviation simulation and training industry will be presented in this paper as typical of the regulated high-technology industries. The aviation simulation and training industry emerged at the turn of the twentieth century and it was mostly demand-driven at its onset. The increase in the volume and importance of aviation resulted in government regulation of the industry in the late 1960’s. This has radically changed the industry’s game of innovation into a regulation-based coordination game. Literature described the regulation-centered innovation coordination as “an internally-coherent system of innovation.” The new game had the regulatory frameworks at the core of the innovation process as they defined the market’s acceptance and value capturing from innovative technologies. The evolution of these regulatory frameworks was almost entirely reactive to accidents and catastrophic failures that highlighted existing deficiencies in training methodologies or technologies. This ex-ante regulator-driven system of innovation exhibited recent evolutionary changes towards being a pedagogy-centered service-based system of innovation. The reason behind this transformation was a combination of endogenous and exogenous forces. Technological opportunities, economic pressures and strategic transformation by industry leaders were the three main categories of these forces. The resulting mode of innovation coordination in the industry was a service-oriented pedagogical platform, lead by supplier-user partnerships and monitored by regulation authorities. Compliance to equipment regulatory guidelines is not the principal means of value creation anymore. Rather, the pedagogic value of the training curriculum, encompassing the training devices, is the main source of value creation. A new stable equilibrium of innovation coordination is being reached by the industry, driven by its downstream-most service provision component.

scholarly journals R&D and Standardisation Activities of High Technology Industries in Japan in the Information and Communications Technology Services Field

2013 ◽  
Vol 4 (2) ◽  
pp. 67-83 ◽  
Author(s):  
Suguru Tamura
Keyword(s):  
Positive Impact ◽  
Pearson Correlation ◽  
High Technology ◽  
Information And Communications Technology ◽  
Communications Technology ◽  
Patent Applications ◽  
The Impact ◽  
Technology Industries ◽  
High Technology Industries ◽  
Corporate Innovativeness

This study aims to elucidate the relationship between Research and Development (R&D) and standardization of Information and Communications Technology (ICT) services in high technology industries of Japan. The study focuses on Intellectual Property (IP) standardization activities as a key factor in corporate innovativeness. The author examines the magnitude of the effects of R&D and standardization on patent applications in the Japanese electric machinery industry, which provide ICT services and includes the electric appliance manufacturers. The number of patent applications is known to have a positive impact on corporate innovativeness and can be used as a proxy for determining this magnitude of the impact. Pearson correlation coefficient between the number of persons engaged in IP standardization activities and the number of patent applications is found to be positive, but smaller in comparison with the number of persons engaged in R&D activities. However, the impact of standardization is larger than what is generally anticipated. These findings might assist corporate managers in decision making pertaining to allocating human resources.

The impact of intellectual capital on firm performance: a study of Indian firms listed in COSPI

2018 ◽  
Vol 19 (5) ◽  
pp. 935-964 ◽  
Author(s):  
Neha Smriti ◽  
Niladri Das
Keyword(s):  
Firm Performance ◽  
Intellectual Capital ◽  
Value Creation ◽  
Generalized Method Of Moments ◽  
Value Added ◽  
Secondary Data ◽  
Share Price ◽  
Content Type ◽  
Listed Firms ◽  
The Impact

Purpose The purpose of this paper is to examine the effect of intellectual capital (IC) on financial performance (FP) for Indian companies listed on the Centre for Monitoring Indian Economy Overall Share Price Index (COSPI). Design/methodology/approach Hypotheses were developed according to theories and literature review. Secondary data were collected from Indian companies listed on the COSPI between 2001 and 2016, and the value-added intellectual coefficient (VAIC) of Pulic (2000) was used to measure IC and its components. A dynamic system generalized method of moments (SGMM) estimator was employed to identify the variables that significantly contribute to firm performance. Findings Indian listed firms appear to be performing well and efficiently utilizing their IC. Overall, human capital had a major impact on firm productivity during the study period. Furthermore, the empirical analysis showed that structural capital efficiency and capital employed efficiency were equally important contributors to firm’s sales growth and market value. The growing importance of the contribution of IC to value creation was consistently reflected in the FP of these Indian companies. Practical implications This study has robust theoretical grounds and employs a validated methodology. The present study extends knowledge of IC among academicians and managers and highlights its contribution to value creation. The findings may help stakeholders and policymakers in developing countries properly reallocate intellectual resources. Originality/value This study is the first study to evaluate IC and its relationship with traditional measures of firm performance among Indian listed firms using dynamic SGMM and VAIC models.

scholarly journals The Influence of Acquisitions on a Firm’s Performance within a Sector: An Application on Istanbul Stock Exchange

2014 ◽  
Author(s):  
İbrahim Halil Ekşi ◽  
Nasara Banu Güzel ◽  
Rabia Ecem Küçüktaşdurmaz
Keyword(s):  
Mergers And Acquisitions ◽  
Financial Performance ◽  
Stock Exchange ◽  
Topsis Method ◽  
Listed Firms ◽  
Positive Effects ◽  
Istanbul Stock Exchange

In recent years it have seen a significant increase in the number of business mergers and acquisitions. There are number of reasons led to this trend. Amongst them it is the need to increase the firm financial performances. This paper mainly is focuses on other different effects of mergers and acquisitions on the financial performance of businesses. In this study, looking at Turkish stock exchange listed firms that have experienced acquisitions or mergers and the effects of such mergers on their performance. In this context, it be looked at textile firms and firms based on stone and land work that experienced acquisitions in 2010. The firms are Altinyildiz in textile and Çimbeton in the mining sectors respectively. Having look at the financial performances of these firms in their respective sectors before the acquisitions (2007, 2008, 2009), the acquisitionsin 2010, 9 rates were used the in TOPSIS method. According to findings, the acquisitioned firm’s show that they have positive effects on the financial performances of the firms. It is observed that there are differences in sectors’ period and degrees. In this case, it’s possible to explain the sectoral dynamics and acquisions of the firms’ integration.

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