Gimede Gigante, Andrea Cerri and Giuseppe Leone
This research investigates the effect of mergers and acquisition (M&A) transactions in the pharmaceutical sector. The study assesses the short-term value creation or destruction…
Abstract
Purpose
This research investigates the effect of mergers and acquisition (M&A) transactions in the pharmaceutical sector. The study assesses the short-term value creation or destruction for shareholders of pharmaceutical companies involved in M&A activities on the acquiring side.
Design/methodology/approach
The empirical analysis is carried out by applying the event study methodology in order to define the cumulative abnormal return for each transaction observed. Then, the correlations between abnormal returns and economic metrics are determined building a multiple regression model. These metrics refers to the acquirer, target or to the deal itself.
Findings
Evidence show a short-term value creation for shareholders of pharmaceutical companies involved in M&A transactions on the acquiring side. On the one hand, the analysis suggests a negative correlation between the value creation and the acquiring firm's level of indebtedness. On the other hand, the value creation is positively correlated with target's metrics such as Return on Equity (ROE), Return on Assets (ROA) and Research and Development (R&D) intensity. Value creation is also tied to deal-specific characteristics regarding the cash used in the transaction and the comparative extent of the deal.
Practical implications
This analysis allows to predict returns around an announcement day considering the described indicators of value creation or destruction. M&As play a key role in the strategy implementation as reaction to exogenous shocks and endogenous needs.
Originality/value
This study enriches the literature of corporate finance applied to the pharmaceutical sector. Indeed, this industry is gaining increasing relevance in the M&A panorama. Thus, the related dynamics need to be assessed considering the uniqueness of the pharmaceutical sector in terms of regulation, stakeholders and social impact.
Details
Keywords
Raksmey Sann, Pipat Pimpohnsakun and Panuwat Booncharoen
Developing an optimal strategy for maintaining quality customer relationships in the logistics industry is critical for achieving long-term benefits. This study aims to examine…
Abstract
Purpose
Developing an optimal strategy for maintaining quality customer relationships in the logistics industry is critical for achieving long-term benefits. This study aims to examine the relationship between logistics service quality (LSQ), customer satisfaction, trust, and behavioral loyalty in the context of Khon-Kaen Bus Terminal 3 in Thailand. The purpose is to understand how service quality influences customer trust and loyalty in the context of bus transport.
Design/methodology/approach
Face-to-face questionnaires were administered to 338 experienced bus transport users at Khon-Kaen Terminal 3. A quantitative approach was utilized, employing partial least squares structural equation modeling to analyze the relationships between logistics operations, after-sales service quality, customer satisfaction, trust and loyalty.
Findings
The results reveal that both logistics operations service quality and after-sales service quality positively impact customer satisfaction and trust. Trust, in turn, significantly influences customer loyalty, and it is enhanced when customers receive satisfactory services. The study demonstrates that customer loyalty is strengthened by building trust and providing a high-quality logistics service, confirming the significant relationship between LSQ and loyalty.
Research limitations/implications
While this study acknowledges the challenge posed by Khon-Kaen Terminal 3’s strong monopoly, it also recognizes that users may have limited alternatives. Consequently, the research highlights the difficulty in accurately measuring customer loyalty.
Originality/value
This study contributes to the literature by examining LSQ in a Thai context, offering new perspectives on customer loyalty in the bus transport sector. It provides practical recommendations for improving customer relationships and gaining a competitive advantage in the logistics industry.