Supporting management decisions for M&A transactions based on the strategic allocation of intangible assets

  • 124 Views
  • 25 Downloads

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License

In the context of mergers and acquisitions (M&A), management decisions regarding asset allocation play a key role in determining the strategic value of intangible assets. This study investigates the allocation of such assets, particularly goodwill, in relation to enterprise value on balance sheets across global M&A transactions within the B2C sector from 2000 to 2021. Utilizing data from the Markables database, which includes 543 transactions, this study presents robust and quantile regression analyses to effectively address challenges arising from non-normally distributed data. The findings underscore a significant correlation between the strategic allocation of intangible assets, especially goodwill, and enterprise value, highlighting their essential role in reflecting future earning potential and growth prospects. Additionally, the study reveals specific factors, including transaction type (asset vs. share deals) and timing (transaction year), that influence these asset allocation decisions. These insights are critical for enhancing management decisions in valuation and strategic financial planning during M&A. By elucidating these dynamics, this paper significantly contributes to the literature on management accounting and corporate finance, offering a granular understanding of the valuation of intangible assets in business combinations.

Acknowledgment
This study emerged from a cooperative project between the University of Applied Sciences Kufstein (Austria) and the University of Economics in Bratislava (Slovakia) 2023-05-15-003 “Enhancing long-term business value towards environmentally and socially sustainable economy,” which was funded by the performance committee of the Austria-Slovakia Action initiative.

view full abstract hide full abstract
    • Figure A1. Diagrams for the estimated parameters for the variables GOOD, ITANG and TANG
    • Table 1. Variables of the study
    • Table 2. Descriptive statistics and correlation analyses
    • Table 3. Robust regression analyses
    • Table 4. Robustness test of the results using quantile regression and a modified robust regression with non-linear effects
    • Conceptualization
      Giuseppe Sorrentino, Mario Situm, Yuliia Serpeninova
    • Data curation
      Giuseppe Sorrentino, Mario Situm
    • Formal Analysis
      Giuseppe Sorrentino, Mario Situm
    • Investigation
      Giuseppe Sorrentino, Mario Situm, Milos Tumpach, Zuzana Juhaszova
    • Methodology
      Giuseppe Sorrentino, Mario Situm
    • Resources
      Giuseppe Sorrentino, Mario Situm
    • Software
      Giuseppe Sorrentino, Mario Situm, Milos Tumpach
    • Writing – original draft
      Giuseppe Sorrentino, Mario Situm, Yuliia Serpeninova, Milos Tumpach, Zuzana Juhaszova
    • Project administration
      Mario Situm, Yuliia Serpeninova
    • Supervision
      Mario Situm, Yuliia Serpeninova, Milos Tumpach
    • Funding acquisition
      Yuliia Serpeninova
    • Writing – review & editing
      Yuliia Serpeninova, Milos Tumpach
    • Validation
      Milos Tumpach, Zuzana Juhaszova
    • Visualization
      Milos Tumpach, Zuzana Juhaszova
Related Articles

  • The influence of Umrah service operation on customer value, trust, and commitment

    Aisyah RahmawatiORCID , SucherlyORCID , Asep MulyanaORCID , SutisnaORCID doi: http://dx.doi.org/10.21511/im.19(3).2023.05
    Innovative Marketing Volume 19, 2023         Issue #3         pp. 51-61 Views: 427 Downloads: 199 TO CITE АНОТАЦІЯ

    Umrah is one of the Muslim pilgrimage journeys to the holy city of Makkah. Many Umrah agents provide good services to attract customers. One of the crucial aspects for Umrah agents is service operation quality. The study aims to investigate the influence of service operations on the value, trust, and commitment of Umrah pilgrims in Jakarta, Indonesia. This paper uses a quantitative approach and employs SEM-PLS to analyze the data. Data were collected through an online questionnaire from 425 respondents. The respondents are Umrah pilgrims who performed their pilgrimage before 2019 through agents registered in Jakarta. However, only 370 responses qualified. The results show a strong relationship between service operations and customer value, trust, and commitment. There is also a relationship between customer value and customer commitment and between customer trust and customer commitment. Service operations also have an influence on commitment with trust as a mediator. However, service operations do not influence commitment when mediated by customer value. The practical implication of this study is that Umrah agents should increase their service operation, particularly information technology-based services, add Islamic and social values, and increase the cognitive commitment among customers.

  • The role of internally generated goodwill in choosing areas and objects of investment

    Svitlana LabunskaORCID Researcher ID, Ľuboš CibákORCID , Mykola SidakORCID Researcher ID, Marharyta SobakarORCID Researcher ID doi: http://dx.doi.org/10.21511/imfi.20(2).2023.19
    Investment Management and Financial Innovations Volume 20, 2023         Issue #2         pp. 215-231 Views: 410 Downloads: 185 TO CITE АНОТАЦІЯ

    The purpose of the study is to develop and test in practice the method of analyzing the relationship between the formation of internally generated goodwill and investment attractiveness of an enterprise based on econometric modeling in order to improve the investment management process. Attracting additional investments, both for Slovakia and Ukraine, requires the identification of promising objects of investment. Assessment of enterprise’s potential cannot be accurately performed on the base of financial statements, which reflect only the state of assets. It is necessary to take into account the prospects for development of this business unit in the future, that largely depends on effective functioning of management system. The success of business processes depends on how rationally managers use the resources of the enterprise and form the structure of assets adequate to the demands of the market. The article considers the problem of estimating the value of enterprises in order to attract investments based on internally generated goodwill, and determines the peculiarities of the formation and types of goodwill of a commercial enterprise. As the main research method, canonical correlation modelling was used to analyze data of Ukrainian machine-building enterprises for the period 2017–2020. As a result, the factors responsible for the formation of internally generated goodwill were identified and classified according to their economic nature. Correlation dependencies between groups of initial and resulting coefficients were calculated and the areas of enterprise management that have the greatest impact on the formation of its market value were identified.

  • Product quality as a mediating variable in repurchase decisions: The case of Indonesian skincare products

    Ana KomariORCID doi: http://dx.doi.org/10.21511/im.19(3).2023.11
    Innovative Marketing Volume 19, 2023         Issue #3         pp. 123-133 Views: 397 Downloads: 160 TO CITE АНОТАЦІЯ

    When buying skincare products, consumers are more concerned with comfort and safety and seek for high-quality items. Indonesian-made skincare products must be of the highest caliber and adhere to all applicable health regulations. This study aims to determine whether product quality can effectively mediate the effects of brand image, customer value, digital marketing, and product quality on repurchase decisions. The study surveyed people using skincare products in the Indonesian city of Surabaya, utilizing a targeted sample of 385 female responders at least 18 years old. According to descriptive statistics, background status significantly affects the decision to repurchase skincare products. Structural equation modeling was then used to examine the data. The results show that product quality mediates the association between brand image and consumer value on decisions to repurchase. However, it does not mediate the relationship between digital marketing and such decisions. Another finding shows that in contrast to digital marketing, brand image and customer value positively influence product quality.
    According to the study’s findings, product quality is a strong mediator and one of the factors influencing consumers’ decisions to repurchase. Additionally, the brand image of skincare products, which differ in each product’s features, enhances the consumer’s decision to repurchase.

Download Preview
Close
Problems and Perspectives in Management
Problems and Perspectives in Management