Matching Items (53)
- Genre: Academic theses
- Resource Type: Text
An Empirical Study on the Growth of Small and Medium-Sized Pharmaceutical Enterprises through M&A in China
This thesis starts with an analysis of the current situation of the pharmaceutical industry in China, and discusses the strategic mergers and acquisitions (M&A) by small and medium-sized enterprises (SMEs) in the pharmaceutical industry in China. It elaborates on the rationale for the development of the mergers and acquisitions of the pharmaceutical SMEs. Then a literature review is provided on the causes of corporate mergers and acquisitions such as the economies of scale, synergistic effect, transaction costs, market power, and strategic diversification.Next,the thesis analyzes the underlying rationale for the M&A transactions in the pharmaceutical industry in China, and explores the likely path of successful value creation for pharmaceutical SMEs in China. Specifically, with five in-depth case studies of M&A transactions of pharmaceutical firms, this thesis reveals the critical success factors leading to value creation and growth in the practice of mergers and acquisitions of the pharmaceutical SMEs in China.
In accordance with the Principal Agent Theory, Property Right Theory, Incentive Theory, and Human Capital Theory, firms face agency problems due to “separation of ownership and management”, which call for effective corporate governance. Ownership structure is a core element of the corporate governance. The differences in ownership structures thus may result in differential incentives in governance through the selection of senior management and in the design of senior management compensation system. This thesis investigates four firms with four different types of ownership structures: a public listed firm with the controlling interest by the state, a public listed firm with a non-state-owned controlling interest, a public listed firm a family-owned controlling interest, and a Sino-foreign joint venture firm. By using a case study approach, I focus on two dimensions of ownership structure characteristics – ownership diversification and differences in property rights so as to document whether there are systematic differences in governance participation and executive compensation design. Specifically, I focused on whether such differences are reflected in management selection (which is linked to adverse selection and moral hazard problems) and in compensation design (the choices of performance measurements, performance pay, and in stock option or restricted stock). The results are consistent with my expectation – the nature of ownership structure does affect senior management compensation design. Policy implications are discussed accordingly.
Research on Talent Cultivation in China 's Universities Based on Supply - Demand Relation of Labor Market
University graduates play a significant role in the labor market of China. Universities continuously supply senior talents and provide a strong guarantee to the country’s development. However, with the enlargement of the enrollment scale, more and more graduates become unemployed or forced to be employed. Most literatures mainly focus on the unemployed phenomenon or reasons, but had neglected the relationship among the employment, universities and the labor market. This assay is trying to using the supply and demand theory of classical economics to analyze the training direction and model of university from the perspective of the supply and demand of labor market. This assay proposes that universities have to integrate with the demand of the labor market so that to cultivate the talents to meet the social needs.
Firstly, the essay analyzes the relationship between the universities education and the supply and demand labor market by using the view of labor economics, and shows the mainly phenomenon and features of supply-demand imbalance. And then, the writer considered that universities talent cultivation development of China has gone through “absolute shortage”, “relative shortage” and “structural unbalanced” three stages. Thirdly, the survey results confirmed that the talent cultivation in universities does not match the demand of the labor market. On one other hand, over educated is a common phenomenon in the academic education. On the other hand, the graduates are lack of education skills training. Fourthly, the essay analyzes the reasons which lead to the unbalance. The unbalance is not only affected by the macro factors, but also by the micro factors. Fifthly, build up the interaction system model “UPT-LM” for the universities talent cultivation and the labor market, and separately building up the macro interaction system and the micro interaction system to analyze the balance of supply and demand. Based on this, it should strengthen the interaction on the feedback mechanism. At last, strengthening the connection of universities talent cultivation and labor market is a systematic program which needs the corporation from the government, the universities and the labor market.
Mergers and acquisitions (M&As) have been playing a very significant role in the capital market. Many companies regard mergers and acquisitions as an important way for their business expansion and transformation. This paper begins with a review of literature on firm’s motivations of and outcomes in M&A, and followed by a critical examination of three case studies of actual M&A transactions based on the insights provided from the literature review. For each case study, a firm’s motivations and related managerial initiatives for M&A activities were examined, followed by an assessment of the firm’s post M&A performance results. This allows the study to discerns the insights of why and how a firm proceed in its M&A transactions from its strategic intent to its post M&A managerial actions. Collectively, the results show that the key drivers for a firm’s M&A successes rest on a firm’s abilities to manage the M&A activities consistent with its strategic intent (e.g., creating synergies or transformation through diversification) and followed by its post M&A integration efforts in achieving its strategic intent.
The emergence and fast growth of shared workspaces have attracted increasing attention from investors, practitioners, and researchers. Overall, this industry is still at an early stage of development and the business models of shared workspace providers are still evolving. To enhance the understanding of the different business models adopted by the leading shared workspace providers, I conduct an in-depth qualitative analysis of three current market leaders - Regus, WeWork, and UrWork – using the Business Model Canvas proposed by Osterwalder (2008). My analysis suggests that shared workspace providers creates value by offering three tiers of services: (1) satisfying users’ needs for physical office spaces, (2) helping them build an enterprise eco-system, and (3) facilitating the development of a user community. I further use the PEST model to analyze how the macro-environmental factors in China and U.S. may have contributed to the development of different shared workspace business models in these two countries. Based on the above analyses, I propose a list of factors that may be critical to investors’ valuations of shared workspace companies.
The Performance Effects of Cross-Industry Mergers and Acquisitions at Firms Listed in China’s Growth Enterprises Market
This study investigates the performance effects of cross-industry mergers and acquisitions (M&A) using a sample of firms listed in China’s Growth Entrepreses Market (GEM). Compared to firms listed in the Shanghai and Shenzhen Stock Exchanges, firms listed in the GEM are much smaller and tend to derive the majority of their revenues from a single industry. I first analyze the motives for firms listed in the GEM to engage in M&As and propose a set of factors that may influence their likelihood of M&A activities. Using data on 55 cross-industry M&As between January 1, 2012 and December 31, 2016, I find that investor generally responded positively in short-term, as indicated by the positive accumulated abonormal returns over the first five trading days following the announcements. Meanwhile, I found no evidence that investors benefited from cross-industry M&As in long-term over three years after the event. Further analysis suggests that the short-term effects of cross-industry M&As by GEM listed firms were influenced by the target firm’s market valuation, whether the M&A was paid by cash, the amount of the payment, and the degree of difference between the acquiring firm’s and the target firm’s industries. These findings have important implications for the investors and senior executives of firms listed in the GEM.
Chinese commercial banks have experienced a period of fast and stable development since 2007. The adoption of a comprehensive enterprise risk management (ERM) system based on the Basel Accords was a significant event for the banking supervisory authority and the commercial banks during this period. This study investigates the impact of ERM adoption on the financial performance of the commercial banks as well as the underlying mechanisms using longitudinal data of 96 commercial banks from 2007 to 2016. Results from quantitative analyses suggest the following findings. First, ERM adoption had a positive impact on commercial banks’ financial performance after controlling for the negative impacts of factors such as macro economic conditions and fiscal and monetary policies. Second, although this positive impact was partially attributed to increased risk appetite after the adoption of ERM, results show that ERM adoption also increased risk-adjusted financial performance. Lastly, ERM adoption improved commercial banks’ competence in risk management, as indicated by their sensitivity of financial returns to risk exposures. The above findings also received support from interviews and surveys of senior executives of commercial banks and officials of the banking supervisory authorities.
This study contributes to the understanding of how the adoption of ERM influences the financial performance of Chinese commercial banks, and has important practical implications. Based on the empirical findings, I recommend all commercial banks in China to adopt and implement ERM so that they can better cope with the challenges presented by macroeconomic uncertainty, marketization, and internationalization. In the process, it is critical for them to understand the mechanisms through which ERM influences their performance. Meanwhile, they shall be aware of the operational costs associated with the initial adoption of ERM, learn from the experiences of those that have already adopted ERM, and have a long-term orientation about performance effect of ERM adoption. Supervisory authorities can also play a key role in guiding commercial banks to be more effective and efficient in the adoption of ERM.
A sparsity enforcing framework with TVL1 regularization and its application in MR imaging and source localization
The theme for this work is the development of fast numerical algorithms for sparse optimization as well as their applications in medical imaging and source localization using sensor array processing. Due to the recently proposed theory of Compressive Sensing (CS), the $\ell_1$ minimization problem attracts more attention for its ability to exploit sparsity. Traditional interior point methods encounter difficulties in computation for solving the CS applications. In the first part of this work, a fast algorithm based on the augmented Lagrangian method for solving the large-scale TV-$\ell_1$ regularized inverse problem is proposed. Specifically, by taking advantage of the separable structure, the original problem can be approximated via the sum of a series of simple functions with closed form solutions. A preconditioner for solving the block Toeplitz with Toeplitz block (BTTB) linear system is proposed to accelerate the computation. An in-depth discussion on the rate of convergence and the optimal parameter selection criteria is given. Numerical experiments are used to test the performance and the robustness of the proposed algorithm to a wide range of parameter values. Applications of the algorithm in magnetic resonance (MR) imaging and a comparison with other existing methods are included. The second part of this work is the application of the TV-$\ell_1$ model in source localization using sensor arrays. The array output is reformulated into a sparse waveform via an over-complete basis and study the $\ell_p$-norm properties in detecting the sparsity. An algorithm is proposed for minimizing a non-convex problem. According to the results of numerical experiments, the proposed algorithm with the aid of the $\ell_p$-norm can resolve closely distributed sources with higher accuracy than other existing methods.
The Impacts of Foreign Banks’ Management Model on Their Degree of Localization and Operating Efficiency in China
This thesis aims to investigate the impacts of foreign banks’ management model on their degree of localization and operating efficiency. I decompose their management model into five major factors, including two formative factors and three reflective factors. The two formative factors are (1) strategic orientation and (2) target customers, and the three reflective factors are (1) top management team composition, (2) organizational structure, and (3) managerial authority and incentives. I propose that the formative factors influence foreign banks’ degree of localization, as demonstrated by the reflective factors, which subsequently influence foreign banks’ operating efficiency in China.
To test the above proposition, I conduct the empirical analysis in three steps. In the first step, I investigate foreign banks’ management model by surveying 13 major foreign banks locally incorporated in Mainland China. The results suggest that these 13 foreign banks can be categorized into three distinct groups based on their management model: intergrators, customer-followers, and parent-followers. The results also indicate that intergrators have the highest level of localization while parent-followers have the lowest level of localization.
In the second step, I conduct DEA (Data Envelope Analysis) and CAMEL (Capital Adequacy, Asset Quality, Management, Earnings, Liquidity Analysis) to assess the operating efficiency of these 13 foreign banks. The assessment is conducted in two ways: 1) the inter-group comparison between foreign banks and local Chinese banks; 2) the intra-group comparison between the three distinct groups of foreign banks identified in the first step. The results indicates that the principal factor driving the operating efficiency of both local Chinese banks and foreign banks is the comprehensive technical efficiency, which includes both the quality of management and the quality of technical elements. I also find the uptrend of technical efficiency of the integrators is more stable than that of the other two groups of foreign banks.
Finally, I integrate the results from step one and step two to assess the relevance between foreign banks’ localization level and operating efficiency. I find that foreign banks that score higher in localization tend to have a higher level of operating efficiency. Although this finding is not conclusive about the causal relationship between localization and operating efficiency, it nevertheless suggests that the management model of the higher performing integrators can serve as references for the other foreign banks attempting to enhance their localization and operating efficiency. I also discuss the future trends of development in the banking industry in China and what foreign banks can learn from local Chinese banks to improve their market positions.
This study seeks to develop a framework that can help firms in China’s guarantee industry to better identify and prevent risk when they offer guarantee services to small and medium-sized enterprises (SME). With the continuously increasing demands of SME financing, the guarantee industry has developed rapidly in China. Meanwhile, the turmoil in global financial markets and the significant slowdown of global economy have started to have a negative impact on China’s economy, increasing the risk exposure of China’s guarantee industry. In this context, risk identification and prevention becomes the core competence of a guarantee company. Based on a review of the existing research, two in-depth case studies, and the author’s personal experiences in this industry, this paper does not only provide a comprehensive list of the risks that guarantee firms face in China but also measures for risk identification and prevention.
This thesis is organized as follows. First, I provide a brief description about the emergence and development of China’s guarantee industry, as well as its current status. Next, I explain what kinds of risks faced by guarantee firms in China that influence their performance and survival, and summarize the various external and internal risk factors. I also conduct one in-depth case analysis to illustrate how a guarantee firm can better identify the risks it is exposed to. Next, on the basis of another in-depth case analysis, I develop a framework that can help guarantee firms to systematically develop effective measures of risk identification and prevention. I conclude with a discussion of this study’s implications for guarantee firms and the regulatory governmental agencies in China.