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This thesis explores and explains social processes in the development of internal corporate ventures. To address this research aim, three research questions are presented to inform the investigation of roles, relationships and social processes in CV activity. In order to address these questions, a critical literature review is presented which explores research findings and conceptual studies in relation to the development of internal corporate ventures and the three specific research questions. This informs the development of three initial thematic templates. A research philosophy is presented which explains the subjectivist ontology and strong social constructionist epistemological stance of the research project. This is followed by an exploration of social processes leading to the development of a conceptual framework. The thematic template and conceptual framework are subsequently interrogated through the analysis of 46 transcripts of telephone interviews with individuals engaged in CV activity. Following the discussion of results, a refinement of the conceptual framework is proposed. Subsequently, a longitudinal CIT case study is presented and analysed in relation to the developed framework. Finally, a key summary is provided and contributions to knowledge, limitations and implications are presented.

While the traditional agency model assumes managerial risk aversion and underinvestment in high-risk opportunities, the behavioural agency model allows for risk seeking by managers leading possibly to over-risky investments. Corporate governance mechanisms through their disciplining roles can steer managers towards optimal risk and avoid value destruction from either risk-deficit or risk-excess on the part of their managers. None of the existing studies offer a complete picture of managerial risk taking by allowing for both managerial risk aversion and risk seeking. The painting of just such a picture is the primary focus of this thesis. This thesis aims to answer the following two research questions in the context of corporate acquisitions: 1. What are the factors that drive managers to undertake risky projects? 2. To what extent is firm performance related to the optimal or suboptimal risk level of an investment project? This thesis investigates 289 UK domestic high-tech acquisitions and 289 matching low-tech acquisitions over the period 1993-2000. High-tech acquisitions are argued to be riskier than low-tech acquisitions. This thesis documents that fixed compensation, annual bonus, and LTIP cash provide few incentives for managers to conduct risky acquisitions. It finds significant evidence that equity-based wealth (such as LTIP shares, stock options and managerial shareholdings) which links managers' wealth to firm stock performance, has a nonlinear incentive effect on managers' selection of acquisition risk. At a low level, it encourages managers to pursue risky acquisitions. However, at high levels it discourages managerial risk taking. This nonlinear effect is mainly contributed to by managerial shareholdings. No evidence is found that stock options make managers select riskier acquisitions. Strong evidence is found that a high level of managerial wealth, which induces managerial risk aversion, can weaken the incentive alignment effect of equitybased wealth. This thesis finds significant evidence that managerial behavioural biases (such as overconfidence, over-optimism, and hubris) boosted by good past performance, firm glamour ratings by the stock market and a flattering media profile induce managers to engage in risky high-tech acquisitions. Corporate monitors are generally ineffective in disciplining managers' selection of acquisition risk. Overall, this thesis concludes that what makes managers take risky acquisitions appears to be the internal factors, i. e., factors that work within managers' inner selves and give them more confidence that they can control risks. External factors such as corporate monitoring devices that try to control managerial behaviour, do not necessarily boost managers' confidence in their risk managing capabilities. Regarding post-acquisition performance, this thesis documents that UK hightech acquisitions in the 1990s do not bring any value to acquirer shareholders up to three years after acquisition completion. However, high-risk high-tech acquisitions do not necessarily destroy more shareholder value than low-risk low-tech acquisitions. Acquisitions that are identified as at 'optimal' risk level perform better than under-risk acquisitions. Indeed, more shareholder value is created in acquisitions that are over-risk than acquisitions that are either optimal-risk or under-risk. Therefore, this thesis suggests that many UK acquirer managers during the period over 1993-2000 have foregone valuable but high risk growth opportunities and destroyed shareholder value more by being excessively risk-averse rather than being adventurous in their risk choices.

Randomised controlled trials (RCTs) play a fundamental role in the development and marketing activities of pharmaceutical companies. They are the primary means of evaluating the tolerability, safety and efficacy of a drug, and for providing information relevant for pricing and reimbursement decisions and clinical decision-making. RCTs require a substantial investment by pharmaceutical companies and the financial consequences of poorly or sub-optimally designed trials are potentially substantial. Revenue does not materialise unless a licence to market a product is granted and sales may be restricted if a trial fails to provide evidence of sufficient strength or relevance for those involved in product adoption decisions. From a pharmaceutical company's perspective, the value of RCTs can therefore be judged on the contribution they make to the performance of a drug in the market and hence on their contribution to the performance of the firm. Consequently the design choices made in the planning of RCTs are effectively investment appraisal decisions. However, the application of investment appraisal techniques to RCT design has not previously been proposed. The purpose of this thesis is to consider how private sector investment appraisal methods might be applied to RCT design decision-making and to explore aspects of the practicalities of application. A general investment appraisal model is presented and its application to determine profit maximising RCT designs is illustrated. Considering the cost side of the investment appraisal equation, it is shown how decision-makers' requirements for cost-effectiveness evidence derived from trials could have a significant impact on the major determinants of cost (sample size and study duration) depending on their specific preferences for evidence defined over key components of RCT design. Considering the revenue side of the investment appraisal equation, it is shown how discrete choice analysis could be used to incorporate decision-makers' preferences for RCT designs into the planning of studies. Specifically, it is shown how the predicted probabilities derived from the application of this technique could be used within an investment appraisal framework. Directions for future research into the application of investment appraisal to RCT design are proposed.

This study identifies additional investment incentives, applicable to the manufacturing sector, which the South African government could introduce to encourage investors to choose the South African manufacturing sector as a desired investment destination. A comparison is made between the relevant investment incentives provided to manufacturing companies by Malaysia and Singapore and those provided by South Africa, in order to examine the similarities and differences between these incentives. In the light of these findings, recommendations are made for revised or additional investment incentives in South Africa to promote investment in South African manufacturing companies and reduce some of the barriers that prevent local and foreign investment in South Africa. / Accounting / M. Com. (Accounting)

This study identifies additional investment incentives, applicable to the manufacturing sector, which the South African government could introduce to encourage investors to choose the South African manufacturing sector as a desired investment destination. A comparison is made between the relevant investment incentives provided to manufacturing companies by Malaysia and Singapore and those provided by South Africa, in order to examine the similarities and differences between these incentives. In the light of these findings, recommendations are made for revised or additional investment incentives in South Africa to promote investment in South African manufacturing companies and reduce some of the barriers that prevent local and foreign investment in South Africa. / Accounting / M. Com. (Accounting)