The empirical analysis of mergers and acquisitions on the corporate performance in the pharmaceutical industry

Research Project

Project/Area Number	24730228
Research Category	Grant-in-Aid for Young Scientists (B)
Allocation Type	Multi-year Fund
Research Field	Applied economics
Research Institution	Nanzan University
Principal Investigator	MIYAZAKI Hironobu 南山大学, 経済学部, 准教授 (70433521)
Project Period (FY)	2012-04-01 – 2015-03-31
Project Status	Completed (Fiscal Year 2014)
Budget Amount *help	¥1,430,000 (Direct Cost: ¥1,100,000、Indirect Cost: ¥330,000) Fiscal Year 2014: ¥260,000 (Direct Cost: ¥200,000、Indirect Cost: ¥60,000) Fiscal Year 2013: ¥650,000 (Direct Cost: ¥500,000、Indirect Cost: ¥150,000) Fiscal Year 2012: ¥520,000 (Direct Cost: ¥400,000、Indirect Cost: ¥120,000)
Keywords	M&A / 医薬品産業 / 企業パフォーマンス / マッチング / 企業パフォ－マンス
Outline of Final Research Achievements	The purpose of this paper is to study how M&A in the pharmaceutical industry affects the corporate performance after that. Using financial data and stock market data, and employing the propensity score matching, we investigate the effect of M&A. We find that R&D investment increases, but corporate performance declines in the long-run. Moreover, we conduct three analyses to examine the effect of M&A on the stock price, however, we obtain three different results and cannot arrive at a definite conclusion.