Booth, Rupert J. (2011) A multidimensional analysis of post-acquisition performance : the case of research and development in the pharmaceutical sector. PhD thesis, University of Warwick.

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Abstract

This thesis provides an additional perspective of the Merger Paradox, namely that
mergers and acquisitions (M&A) continue to be transacted when historically their
results seem to be disappointing overall.
The thesis shows that when a theoretically sound basis (related to the Resource
Based View and expressed as twelve design principles) is used to design a
performance measurement framework, then there is no association between a
firm's post-acquisition performance and the scale of a firm's previous acquisitions;
the thesis then shows, by contrast, that there is a positive association between
firms with an above-average level of past acquisitions (by value) and higher
financial performance. This divergence provides both a motive and an ability to
continue to undertake M&A, despite a lack of association of acquisitions with
longer-term operational performance and very strong evidence of diseconomy of
scale in the most crucial business process, for the case examined, which is the
research and development (R&D) process in the research-based pharmaceutical
sector. Additionally, the thesis examines the relative merits of Return on Sales
and Return on Assets as financial metrics of performance, and establishes
statistically significant differences in the measurement of performance by these
two metrics.
The thesis also establishes a contrast between the findings at the level of the firm
and at the level of the sector, namely acquisitions considered in aggregate are
associated with gains at the sector level, even though this association was not
observed when acquisition was considered at the level of the acquiring firm.
The thesis provides a new application of Data Envelopment Analysis and
establishes a scale efficiency relationship for the pharmaceutical R&D process. A
further empirical contribution is the examination of the statistical distribution of
acquisitions in the pharmaceutical sector and confirmation of the consistency of
that distribution with a power-law.

Item Type:	Thesis (PhD)
Subjects:	H Social Sciences > HA Statistics H Social Sciences > HD Industries. Land use. Labor
Library of Congress Subject Headings (LCSH):	Consolidation and merger of corporations -- Evaluation, Pharmaceutical industry -- Research, Data envelopment analysis
Official Date:	September 2011
Dates:	Date Event September 2011 Submitted
Institution:	University of Warwick
Theses Department:	Warwick Business School
Thesis Type:	PhD
Publication Status:	Unpublished
Supervisor(s)/Advisor:	Angwin, Duncan; Asmild, Mette
Extent:	xvii, 273 leaves.
Language:	eng

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