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Why some acquisitions do better than others: product capital as driver of long-term stock returns
In the 2004 alone, there were more than 30,000 acquisitions worldwide, worth an estimated $1.35 trillion. The conclusion of decades of academic research is that the average acquisition leaves the acquiring firm worse off financially than before. However, not all acquisitions are bad for shareholders; averages conceal winners and losers. In this article, Sorescu, Chandy, and Frabhu highlight a firm-specific reason why some acquirers do better than others. They introduce product capital as a driver of success or failure: product capital represents the marketing- and technology-related assets that a firm has built over time. After controlling for deal-specific factors, they show that firms that invest beforehand in product capital are more likely to succeed at acquisitions than other firms. The results of an analysis of acquisitions in the pharmaceutical industry across seven countries over 10 years (1992-2002) provide empirical support for these arguments. The authors examine two dimensions of selection and deployment: people and products. On the people dimension, they find that firms that have invested substantially in product capital tend to acquire targets with more highly cited scientists. On the products dimension, they find that firms that have invested in product capital tend to acquire targets with fuller product pipelines.Printed Journal
Ketersediaan
| Call Number | Location | Available |
|---|---|---|
| PSB lt.dasar - Pascasarjana | 1 |
| Penerbit | : American Marketing Association |
|---|---|
| Edisi | - |
| Subjek | Pharmaceutical industry Capital Acquisitions & Mergers Success Factors studies Rates of return |
| ISBN/ISSN | 222437 |
| Klasifikasi | - |
| Deskripsi Fisik | - |
| Info Detail Spesifik | - |
| Other Version/Related | Tidak tersedia versi lain |
| Lampiran Berkas | Tidak Ada Data |