Document Type

Article

Publication Date

8-20-2013

DOI

http://dx.doi.org/10.5539/ijbm.v8n18p25

Abstract

This research aims to communicate new results of empirical investigations to learn about the relationship between determination of controlling an acquired firm’s capital, assets and brand versus its capability of innovation and ex post performance of Vietnam’s M&A industry in the 2005-2012 period. The analysis employs a categorical data sample, consisting of 212 M&A cases, and performs a number of logistic regressions with significant results being reported on relationships between pre-M&A strategic pursuit of innovation (versus capital/physical assets) of the acquired and post-M&A performance. In addition, pre-M&A capital expenditures tend to cause poor post-M&A performance. As a general conclusion, this study shows that creative performance can be a factor to pursue in M&A transactions, which suggests the need to emphasize capable and willing human capital. However, in a wave of M&A where there is an overwhelming emphasis on assets and brands, the innovation factor’s impact is limited.

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Copyright Statement

This document was originally published by Canadian Center of Science and Education in International Journal of Business and Management. This work is provided under a Creative Commons Attribution 3.0 License. Details regarding the use of this work can be found at: http://creativecommons.org/licenses/by/3.0/. DOI: 10.5539/ijbm.v8n18p25.

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