Strategic Deals in Emerging Capital Markets: Are There Efficiency Gains for Firms in BRIC Countries?
This book provides an impressive overview of emerging technologies, especially nanotechnologies and biotechnologies, and their prospective applications. It identifies and describes existing and potential markets for emerging technologiy-based applications, and projects scenarios for macroeconomic development based on these technologies. Integrated roadmaps for the development of a nano- and bioindustry are shown and policy measures and corporate strategies developed to advance these technologies. These measures are illustrated using roadmaps and policy case studies.The book combines a practical, comprehensive overview of the technical side of emerging technologies and their applications in various fields with an analysis of market developments and characteristics.
The chapter privdes insight into the specificity of innovations at the mature manufacturing firms in Russia. The findings show that the group of genuine innovators, which target at least the national market and undertake R&D is rather small and unstable. About 10% of large enterprises completed the technological upgrade and get ready for the innovative mode of economic growth. We did not observe the technological convergence. Instead the group of leaders close to technological frontire becomes stronger, while the outsiders fell further behind. Firms which innovate regularly take decisions on product and process innovations simultaniously, and we did not find any evidence that these decisions compete. Innovations are more likely to increase competitiveness when they are integrated into the investment process.
Conventional economic theories assume that competing firms act independently. This theoretical assumption is applied to economic policies and anti-trust legislation. In contrast, economic sociology describes competition as a special type of social action that is oriented towards others. More specifically, to remain in the market, competing firms monitor one another and cooperate by establishing inter-organisational social ties. This paper demonstrates that increasing market pressures, including higher levels of competition and stronger bargaining power among exchange partners, does not disrupt social ties but promotes them. Data for the analysis were collected in 2007 from 501 managers of retail chains and their suppliers in five Russia’s cities (Moscow, Saint Petersburg, Yekaterinburg, Novosibirsk, and Tyumen). The sample includes firms of different sizes that operate in the food and electronics sectors of the consumer market.
Cooperative game theory instruments application to the corporate finance M&A research issues provide an ability to extend the field considered and conclusions obtained. The paper presents the M&A cooperative games modeling and its empirical implementation to analyze the airline strategic alliance as M&A deal.
Being one item by definition investment is actually not homogenous: generally, there are two major types – capital investment and investment in M&A deals. They are different from firm’s point of view and influence economic growth through different channels. In this paper, we examine the relationship between new capital investments and investments in acquisitions in Russia using data for more than one hundred companies in 2004-2014. The period is split into two sub-samples – period of rapid growth (before the global financial crisis of 2008) and post-crisis one (after 2009). Our results show that relationship between fixed investments and investments in acquisitions is opposite for two periods. In the first period, relationship between two types of investment was positive for non-state companies and insignificant for state ones that possibly means that companies did not face the choice of investment form. After the global financial crisis, when monetary conditions and access to external capital markets for Russia tightened considerably, the relationship between investment in new capital and investment in acquisitions became negative. It proves that companies faced a trade-off between two investment forms. Moreover, acquisitions became dependent on company’s profitability. Therefore, the trade-off can be more severe in developing economies since they are more dependent on external financing. These results can provide policy implications given the new understanding of financial constraint significance for investment.
This paper investigates the long-term impact of domestic and international acquisitions, initiated by Russian firms, on their operating performance. In general, acquisitions can be associated with synergy gains, internalization advantages, and higher market power. Acquisitions, however, may also give rise to agency problems as well as new integration and organizational costs, leading to an ambiguous overall impact on the performance of acquirers. Based on a sample of more than 600 acquirers we show that both domestic and international acquisitions tend to reduce the performance of acquirers compared to non-acquiring firms. Examining how different deal, firm and industry level characteristics moderate the value destroying effects of acquisitions, our results suggest that Russian acquirers suffer from the inability to leverage value due to low M&A experience and capability, especially when making international acquisitions.