مقاله انگلیسی تأثیر ادغام و اکتساب بر ارزش ویژه برند
Abstract
Keywords
Introduction
Literature review
Data and preliminary analysis
Model formulation
Estimation
Results
Generalizability of the modeling approach and managerial implications
Conclusion
Appendix A. Assumptions on cost synergies regression
Appendix B. A vertical Manufacturer-led Stackelberg Leader-follower game
Appendix C. An application to China’s automobile industry
References
Abstract
An overlooked strategic benefit of mergers and acquisitions (M&As) is their impact on brand equity. M&As may affect consumer brand preferences, which in turn will affect a firm’s profit. We develop a structural model with a difference-in-differences specification to measure how M&As affect a firm’s profit through three mechanisms: brand equity, cost synergies, and product portfolios. We analyze Lenovo’s acquisition of IBM’s PC division in China’s PC market and find that the increase in brand equity contributed the most to increasing Lenovo’s profit, followed by cost synergies. To explore the generalizability of our modeling approach, we apply it to Geely’s acquisition of Volvo and also find that the gains in brand equity contributed the most to Geely’s profit increase.
Introduction
Mergers and acquisitions (M&As) occur frequently and play an important role in the world economy. In the first three quarters of 2018, global M&As worth $3.3 trillion set a record for the previous three decades, and M&A transaction volumes accounted for more than 4% of global GDP between 1995 and 2018.1 Given the ubiquity and importance of M&A activities, researchers in various disciplines have investigated them from diverse perspectives, including their drivers, implications for market power, impact on product strategies, cost synergies, consumer welfare, and post-merger performance. At the industry level, M&As can take place due to resource deficiencies, technological innovation, deregulation, and capital liquidity (Harford, 2005; Mitchell and Mulherin, 1996; Shleifer and Vishny, 2003). At the firm level, M&As can be motivated by resource dependence, cost synergies, market entry, tax considerations, and firm-manager interactions (Fama, 1980; Larsson and Finkelstein, 1999). M&As can enhance or reduce total economic welfare, depending on the balance between heightened market power, cost reduction, and market structure (Agrawal et al., 1992; Borenstein, 1990; Jeziorski, 2014; King et al., 2004; Peters, 2006; Stigler, 1950).