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Essays on corporate strategy: evolution of corporate capabilities and the role of intangible assets

Arikan, Asli Musaoglu

Abstract Details

2004, Doctor of Philosophy, Ohio State University, Business Administration.
This dissertation is comprised of in depth analysis on the broader topic of corporate strategy with emphasis of the role of intangible assets: 1) the performance implications of acquiring firms that have highly intangible assets structures; 2) dynamic characteristics as well as outcomes of developing intangible yet valuable corporate level capabilities in relation to managing alliances and acquisitions; 3) theoretical perspective on corporate strategy via a formal model that incorporates property rights theory and the resource based view. The first essay investigates the long-run abnormal performance effects of acquiring intangible versus tangible targets. Intangibility of targets is proxied by multiple measures (i.e. R&D, advertisement and human capital stocks, Tobin's q). Each firm's long-run-abnormal performance is calculated as the excess return to the benchmark portfolio. Results show that on average, acquirers of intangible targets earn negative abnormal returns, whereas acquirers of tangible targets break-even. Existence of asymmetric valuation between the two types of M& activity is tested by regressing short-run returns on the buy-and-hold long-run returns. Results provide evidence for market overreaction to the announcements that involve highly intangible targets. Second essay investigates how long it takes for publicly traded firms within to develop corporate capabilities for conducting alliances and acquisitions effectively. The research reported here relies on a dataset that tracks the behavior of the 3,595 firms that went through an initial public offering in 1988-1999 to show how quickly corporate capabilities developed from the earliest years of firm formation. I conduct an event-study analysis to investigate how the abnormal returns to alliance and acquisition announcements changed as they accumulated experience in conducting deals of each type. The results suggest that firms accumulated capabilities for executing and managing both alliances and acquisitions, and investors came to expect that firms would continue to exploit their specialized capabilities into the future. Third essay provides a theoretical perspective on corporate strategy by integrating the capabilities view with the property rights literature in a formal model. The results suggest that the heterogeneity in corporate strategies is the result of variations in firm-specific capabilities to manage the bundle of incentive mechanisms.
Jay Barney (Advisor)
157 p.

Recommended Citations

Citations

  • Arikan, A. M. (2004). Essays on corporate strategy: evolution of corporate capabilities and the role of intangible assets [Doctoral dissertation, Ohio State University]. OhioLINK Electronic Theses and Dissertations Center. http://rave.ohiolink.edu/etdc/view?acc_num=osu1086374216

    APA Style (7th edition)

  • Arikan, Asli. Essays on corporate strategy: evolution of corporate capabilities and the role of intangible assets. 2004. Ohio State University, Doctoral dissertation. OhioLINK Electronic Theses and Dissertations Center, http://rave.ohiolink.edu/etdc/view?acc_num=osu1086374216.

    MLA Style (8th edition)

  • Arikan, Asli. "Essays on corporate strategy: evolution of corporate capabilities and the role of intangible assets." Doctoral dissertation, Ohio State University, 2004. http://rave.ohiolink.edu/etdc/view?acc_num=osu1086374216

    Chicago Manual of Style (17th edition)