The Relationship Between M&A Portfolio and Firm Performance－The Moderating Effect of Slack Resource and R&D Capability

• Main Authors: Hsing-Peng Lin, 林星芃
• Other Authors: 陳忠仁
• Format: Others
• Language: en_US
• Published: 2012
• Online Access: http://ndltd.ncl.edu.tw/handle/09916892432977148220

碩士 === 國立臺灣大學 === 商學研究所 === 100 === As the growth of firm, merge or acquisition has been a common strategy when firms expanding the business map. There are many research have focused on evaluating performance of single acquisition in different method. However, there are few researches focus on the characteristics of the M&A portfolio when the acquiring firm engaged in multiple merge or acquisition. Therefore, we introduced the Resource Based View and the Transaction Cost Theory to compare whether diversity of the M&A portfolio will impact on the firm performance. This study examines the relationship between the diversity of the industry and the trade term in the M&A portfolio how to impact firm operating performance. In addition, adding the moderating role of resource slack and the R&D capability. Comprehensive secondary data of the globally public biotechnology-related industries collected mainly from COMPUSTAT database supported the prediction. The overall sample size is 419 cases, including the 175 acquiring firms. From the research results, the relationship between the diversity of industry and the firm performance is inverse U-shaped. However, the trade term diversity is negatively associated with firm performance. This paper suggests the Resource Based View and the Transaction Cost Theory can provide explanations on the relationship between the diversity of M&A portfolio and firm performance. In addition, organizational slack resource as well as R&D capability plays a moderating role in the relationship of M&A portfolio and firm performance. This study also discusses the managerial implications and provides some future research limits and directions on the end.