A Study of Diversified Investment: A Synthesis of Resource-based View and Real Options Perspective
Date Issued
2014
Date
2014
Author(s)
Chen, Kuan-Yu
Abstract
Through different cooperation strategies, companies diversify to enhance their competitiveness and profitability by integrating resources of research and development (R&D) and enlarging their product lines. However, when facing the uncertainty and risk of asymmetric information, firms can take sequential mode of M&As to invest in the target firms after considering the utilization of gained resources. Therefore, we not only discuss the motives of diversified investment, but also the rationale behind the different investment behavior from resource-based view and real options theory.
On the trend of global mergers and acquisitions in biotechnology industry, Taiwan enterprises also have been diversified into this industry. Consequently, we apply case study method that the diversifiers’ core business are not in biotechnology industry. In conclusion, we attribute the diversification motives to the emphasis of acquirers on the prosperous future development of the target firms and improvement of their product lines. In addition, if the acquiring firm has a clear understanding of the targets, it can have a high propensity to take one-time M&A or invest directly to utilize the resources more effectively. Nevertheless, if there exists the asymmetric information problem severely, the acquirer can take sequential mode of M&A to diversify into the new business field.
Subjects
多角化
資源基礎觀點
實質選擇權
階段性併購
Type
thesis
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ntu-103-R00724009-1.pdf
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