TY  - JOUR
AB  - This study provides new evidence on the nature of value creation in M&A activity based on a sample of giant pharmaceutical M&As and independent non‐M&A rival firms. Relying on multiple indicators of performance, their post‐M&A performance was compared with their pre‐M&A performance as well as with the performance of other major pharmaceutical firms that have not been involved in M&A activity. Based on three measures of operating M&A performance, it has been noted in general that no value creation was realized in the sample M&As in terms of research productivity, return on investment, and profit margin. The sample M&As had lower research productivity than that of both pre‐M&A and independent non‐M&Arival firms. In a similar vein, with regard to return on investment, M&As were not better than their pre‐M&A firms, but performed relatively better than their non‐M&A rivals. As far as the profit margin is concerned, the sample M&As, however, appeared to have better performance than pre‐M&Afirms and almost on par with the non‐M&A rivals.
VL  - 15
IS  - 2
SN  - 1525-383X
DO  - 10.1108/1525383X200700007
UR  - https://doi.org/10.1108/1525383X200700007
AU  - Demirbag Mehmet
AU  - Ng Chang‐Keong
AU  - Tatoglu Ekrem
PY  - 2007
Y1  - 2007/01/01
TI  - Performance of Mergers and Acquisitions in the Pharmaceutical Industry: A Comparative Perspective
T2  - Multinational Business Review
PB  - Emerald Group Publishing Limited
SP  - 41
EP  - 62
Y2  - 2024/04/25
ER  -