Tjandrawinata, Raymond R. and Simanjuntak, Destrina Grace (2012): Factors affecting productivity of research-based pharmaceutical companies following mergers and acquisitions.
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This paper analyzes the impact of mergers and acquisitions (M&A) activities in research-based pharmaceutical companies, specifically the impact of R&D expenditure, profitability, and sales revenue on firms’ productivity, R&D intensity, in pharmaceutical industries following M&A activities. The model was estimated using annual data, gathered from seven large research-based pharmaceutical companies pre and post-M&A, during the period 2003 until 2010. The regression analysis method uses a fixed effect method with generalized least square (GLS) analysis. The result further shows that following M&A activities, firms’ one-year lagged R&D expenditure (t-1) and lagged profitability (t-1) to be positive in increasing significantly the firms’ amount of R&D intensity in research-based pharmaceutical industries, while, surprisingly firms’ one-year lagged sales revenue (t-1) have a negative impact in increasing significantly the firms’ amount of R&D intensity in research-based pharmaceutical industries.
|Item Type:||MPRA Paper|
|Original Title:||Factors affecting productivity of research-based pharmaceutical companies following mergers and acquisitions|
|Keywords:||Mergers and Acquisitions (M&A), R&D Expenditure, Profitability, Sales Revenue, R&D Intensity|
|Subjects:||D - Microeconomics > D2 - Production and Organizations > D21 - Firm Behavior: Theory
D - Microeconomics > D2 - Production and Organizations > D24 - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
|Depositing User:||Raymond Tjandrawinata|
|Date Deposited:||09. Nov 2012 19:20|
|Last Modified:||11. Feb 2013 23:58|
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