Importance. The problem of assessing the impact of the financial factoring on the value of mergers and acquisitions of pharmaceutical companies is very important due to several reasons. First, it is the patent collapse in the market of medicines. Second, it is the reduction of the pro-productivity in the creation of new blockbuster drugs. Third, it is the price pressure on the industry by the national governments, which is increasing in the period of post-crisis economic recovery.
Objective. The purpose of this paper is a theoretical formalization and econometric modeling of power and influence of the financial factors on the value of pharmaceutical companies in the processes of mergers and acquisitions in the industry market.
Methods. In this paper, using econometric methods have tested four hypotheses about the impact of financial parameters on the value of mergers and acquisitions in the pharmaceutical market. The first hypothesis is about the positive effect of the level of innovative activity of the target company, which is reflected in the value of its total assets, as well as in the amount of patents and goodwill. The second hypothesis is about the positive influence of the country and industry tax burden, which is reflected in the target company's net profit. The third hypothesis is about the positive effect of the level of cash flow of the target company at the time of the transaction, which is reflected in its operating income. The fourth hypothesis is about the positive influence of the share in the capital of the target company.
Results of analysis on a 5% level of significance, by a factor of determinate (R-squared), equal to 0.843 confirmed three of the four hypotheses.
Conclusion of the results of the research in this paper is to formulate recommendations to consider two factors in the processes of corporate integration of pharmaceutical companies. First, it is the amount and quality of total assets of a target company. Second, it is the net profit of a target company. The value of the research results is that the management of pharmaceutical companies is able to exercise strategic management of modern business, acting on identified key financial value drivers of M&A transactions.
The paper examines the structure, governance, and balance sheets of state-controlled banks in Russia, which accounted for over 55 percent of the total assets in the country's banking system in early 2012. The author offers a credible estimate of the size of the country's state banking sector by including banks that are indirectly owned by public organizations. Contrary to some predictions based on the theoretical literature on economic transition, he explains the relatively high profitability and efficiency of Russian state-controlled banks by pointing to their competitive position in such functions as acquisition and disposal of assets on behalf of the government. Also suggested in the paper is a different way of looking at market concentration in Russia (by consolidating the market shares of core state-controlled banks), which produces a picture of a more concentrated market than officially reported. Lastly, one of the author's interesting conclusions is that China provides a better benchmark than the formerly centrally planned economies of Central and Eastern Europe by which to assess the viability of state ownership of banks in Russia and to evaluate the country's banking sector.
The paper examines the principles for the supervision of financial conglomerates proposed by BCBS in the consultative document published in December 2011. Moreover, the article proposes a number of suggestions worked out by the authors within the HSE research team.