Cross-border Merger and Acquisitions (M&As) are an increasingly important strategy adopted by firms in order to create value in fiercely competitive global markets. Cross-border M&A value creation, that is, wealth creation for shareholders from cross-border M&As, is therefore of considerable theoretical and practical importance. However, our understanding of the sources of cross-border M&A value creation remains limited. Researchers have found that the most commonly researched variables have little effect on cross-border M&A value creation. We therefore still do not understand the processes behind cross-border M&As. In this is dissertation I examine the main effects of host country regulatory, economic and physical infrastructure institutions on cross-border M&A value creation. I further examine the moderating effects of host country political institutions on the relationship between host country regulatory institutions and cross-border M&A value creation. Moreover, I investigate the effects of institutional distance between host and home country on cross-border M&A value creation. I argue that the effects of institutional distance (regulatory and economic distance) on cross-border M&A value creation are not symmetric, but rather the effects are contingent upon the direction of the distance. My hypotheses are tested on a sample of 6141 cross-border M&As between 1995 and 2003. Results of this analysis show that acquirers are more likely to create value by acquiring targets in countries with less advanced regulatory institutions. Further, my results indicate that host country political institutions positively moderate the relationship between host country regulatory institutions and cross-border M&A value creation. Host country economic institutions have an inverted U-shaped relationship with cross-border M&A value creation, and host country physical infrastructure institutions have a positive relationship with cross-border M&A value creation. Additionally, results show that there is an inverted U-shaped relationship between institutional distance and cross-border M&A value creation. The findings suggest that the effects of regulatory and economic institutional distance on cross-border M&A value creation are not symmetric. The effects are contingent upon the direction of the distance. That is whether the level of host country institutions is higher or lower than that of home country institutions. Implications for management and public policy are discussed.

<p>Abstract:</p><p>Swedish private equity firms have demonstrated a historical success in the buyout industry. However, current trends in the industry such as institutional changes, phenomenon of capital overhang and an influx of new entrants have intensified competition among buyout firms. To maintain the expected high gains, private equity firms must actively create values for their portfolio companies. The purpose of this study is to describe and analyze how private equity firms with a hands-on approach add value to the companies under management.</p><p>A literature review on value-creation by private equity firms was conducted. The valuecreation methods were classified by the authors under the four themes: governance engineering, financial engineering, operational engineering, and strategic redirections. In order to collect the empirical data, the authors chose an inductive approach, used semi-structured interviews with representatives from five private equity firms.</p><p>The results show that the studied firms undertake to a large extent similar actions when it comes to corporate governance and financial engineering. With governance engineering, the firms attempt to strengthen the portfolio companies’ governance system through proper</p><p>due diligence, the appointment of a competent and independent board of directors, an appropriate and deep management incentive program, establishment of a close relationship with management, and periodic management reports. The key to efficient governance is to give the portfolio firms 100% focus on operational and strategic issues in the board meetings. All but one firm use significant debt to lever the buyouts as it is evident that the pressure of debt repayment incentivizes management to better handle scarce capital.</p><p>Operational engineering and strategic redirection are the two themes in which the firms mainly distinguish themselves. Operational engineering largely concerns running operation more efficiently through a combination of cost-cuttings (divestment of non-profitable</p><p>product and customer, outsourcing, centralizing purchases) and higher revenue growth (finding new markets, providing more after-sale service, extending product range). Strategic redirection incorporates the focus on core competences, making strategic decisions about investments, divestments, and add-on acquisitions.</p><p>There have been differences in actions taken by the studied firms. Factors that could affect the behavior of private equity firms are the type of companies acquired, the firm size, their perception of risk and reward regarding a particular action, as well as years of experiences in the industry. There is no common timeframe for actions taken by the studied firms. Nevertheless, all firms emphasize the importance of implementing fundamental changes in the early years of the investments.</p>

In the first essay, we examine the link between CEOs political ideology - conservatism - and their firms' investment decisions. We focus on the effect of CEO conservatism on M&A decisions. Our evidence indicates that politically conservative CEOs are less likely to engage in M&A activities. When they do undertake acquisitions, their firms are more likely to use cash as the method of payment, and the target firms are more likely to be public firms and to be from the same industry. Conditional on the merger, CEO conservatism appears to have a significantly positive impact on long-run firm valuation. However, we find no evidence that conservative CEOs create value in the short run. All our results hold after controlling for CEO overconfidence. In the second essay, we investigate the impact of difference in local political ideologies between acquirers and targets on the likelihood of deal completion and announcement returns over the period of 1981-2009. We posit that increase in political ideology distance between acquirer and target leads to greater risks/costs associated with the integration process. This increase in distance is less likely to allow for the completion of deals and elicit less favorable market response to merger announcements. We find that when political ideology distance between acquirer and target in a merger are minimal, deals are more likely to be completed. We also find that acquirer which are politically proximate to their targets earn significantly higher returns than distant acquirers. After controlling for the geographic effect and other determinants of announcement returns, the political ideology effect still exists. Overall, the evidence suggests that corporate political ideology plays an important role in completing deals and determining announcement returns.

Medan gymbranschen i Sverige domineras av gymkedjor som Friskis &amp; Svettis och SATS, som erbjuder främst gymträning med mindre fokus på tilläggsprodukter för ett relativt lågt pris, domineras marknaden i Storbritannien av företag som t.ex. David Lloyd och Virgin Active. Där är priserna betydligt högre men förutom gymträning finns där även aktiviteter som t.ex. tennis, tillgång till simbassäng, spa, barnpassning och restaurang med fokus på hela familjen. Denna kvantitativa studie i form av konsument- och konkurrentundersökningar ämnade utreda den potentiella efterfrågan och marknadsmöjligheten för ett liknande koncept i Sverige, med norra Stockholm som utvald miljö. Studien visade att det finns viss potentiell marknadsmöjlighet för konceptet samt att intresse för konceptets attribut och tilläggsprodukter finns bland respondenterna. Dock är de tillfrågade respondenterna i synnerhet priskänsliga och nöjda med nuvarande träningsanläggning. Meningen med undersökningen var även att ta reda på vilka av de tillgängliga attribut och tilläggsprodukter som efterfrågades mest från respondenterna. Följande var med ordningsföljd mest intressanta; gym, spa/massage bastu och bubbelbad, racketsporter, simbassäng samt gruppträningar, yoga och danspass.

The current waste management system of Post Consumer Textile Waste (PCTW) in Sweden leads to vast amounts of incinerated or exported textiles. The amount of PCTW reused or repurposed within the country is small in comparison to the amounts of textile products consumed every year. Hence, there is an observed problem in terms of low value creation from textile waste. A system that allows for more textiles to be kept and reused in Sweden could create more economic value in a resource-efficient way. Hence, the purpose of this thesis is to investigate value creation from PCTW for reuse and redesign in Sweden, and to establish a framework for the antecedents of value creation in reverse textile value chains. A pre-study was conducted to map the PCTW industry structure, and served as the basis for sampling cases. Data collection consisted of multiple case studies from 4 charity organisations, 3 clothing brands and 3 redesign brands. The interviews were performed in a semi-structured manner in order to discover the state-of-art in value creation and to identify the key enabling attributes. The findings were analysed to adjust the deductive framework to the textile industry context. Results and findings shows that the state-of-art for value creation among the selected cases varies depending on its mission. Charity organisations are facing a new competition of resources from clothing brands, who have realised a potential of new differentiation by engaging in value creation from PCTW. This has led to a new mind-set among the charity organisations to work more strategically in all their activities. Redesign brands are a relatively new actor and want to work symbolically with redesign to communicate the values in textile materials. Enablers and disablers to value creation from PCTW were found in the interviews and led to the development of an empirical framework. As a whole, this thesis provides rich descriptions of the current preconditions and challenges within the field. Furthermore, it presents a framework for the antecedents of value creation along the recovery processes involved in reuse and redesign value chain. The empirical framework confirms the themes in the theoretical framework, and concludes that there is a set of generic antecedents for value creation in reverse textile value chains. However, there are also category specific antecedents, which need to be considered. The specific experiences of one actor category might as well be valuable knowledge to another, which is why increased collaboration is suggested to enhance value creation from PCTW.

Background Electronic commerce (EC) has become popular due to the increasing demand of efficiency in shopping. The reason for this trend is the changes in technology and socio-demography. E-grocery, therefore, appears to be a fresh and attractive business concept that creates customer value for companies trading in supermarket industry. Handla24 of ICA Bankeryd is known as one of the foremost ICA retailers that generates e-grocery in Sweden. Starting in 2009, the service supplier went from zero customer to its current position of approximately 1400 regular customers. However, perceived value and further expectations from their customers have not been thoroughly understood yet. This issue is hindering Handla24 of ICA Bankeryd in expanding their customer group. Also, their ability to give appropriate service levels is potentially restricting further customer growth. With these issues rectified, Hanla24 of ICA Bankeryd could become a stronger player in the market. Purpose The purpose of this thesis is to examine how customer values are created in e-grocery. We identify factors that deliver value to the existing customers and target a potential customer group in Jönköping city for Handla24 of ICA Bankeryd. We also provide recommendations on  how Handla24 of ICA Bankeryd can attract this group. Method This thesis employs a combination of quantitative method and qualitative method. Data are collected through two face-to-face interviews with Handla24 of ICA Bankeryd. Customers in Jönköping are divided into two clusters: the existing customers and potential customers with two separate survey questionnaires for each of the clusters. Conclusion We conclude that e-grocery does create customer value. In the example of Handla24 - ICA Bankeryd, we identify four main factors that deliver value to their existing customers, namely delivery price, product range, convenience shopping and customer services. In order to target the potential customers for Handla24, we also recognize the characteristics that create the demand for e-grocery. The targeted customers are capable of shopping online due to the habit of surfing the Internet. In addtion, they do not like either queuing at the store or carrying groceries home. This group is a female majority. It also includes families having children or having greater than or equal to 3 members. This customer group does not find 99 kr delivery fee of Handla24 - ICA Bankeryd reasonable, but they still have an interest in trying and recommending e-grocery of Handla24 to other people.

There were several attempts to conceptualize the social value creation process. Previous literature does not commonly consider a non-material approach, using mainly quantitative practices which are not in line with the characteristics of social value. This thesis contributes to the current social value creation studies in two ways. The first centers the subjectivity of social value as a phenomenon embedded in space and time which calls for distinctive ways of understanding its creation. Here the research approaches the hedonic perspective of well-being as a processual phenomenon which makes possible to explore the way social value is created from beneficiaries’ perspective. The second contribution is an empirical study within a voluntary program in order to explore how the beneficiaries’ subjective well-being unfolds over time. In this setting, where impoverished people deal with satisfying their basic needs, a process approach reveals the emotionally loaded context and the complexity of the social value creation. Thereby, the main emphasis of this thesis is to put on a deeper theoretical discussion of the concept of social value creation. The result of this research is an understanding of social value creation as a subjective construct centered on how the process uncovers unique moments experienced by people.

China is a unique market that differs from the Western market in many ways. Companies are not required to publicize financial reports, and furthermore a heavy focus on business relationship building can make it hard for companies to have high quality streams of data to get insights about their markets. For a consultant company to successfully enter the Chinese market and helping producing and technological global firms improving their insights on the Chinese market, the consultant company needs to understand which the important factors are and how those factors can help in creating value for their potential customers. To help the analyzing and consultant firm called Kairos Future, a qualitative case study was conducted on 16 different global companies with focus on industrial production. The case study was mainly conducted through face to face interviews with decision makers who had a broad understanding of their respective companies. In order to find where value can be created, the study was first used to find out which level of autonomity the China part of the global firm hadand how it affects the value creation linked to Market Intelligence, meaning receiving market data and analyzing it in order to get powerful market insights. The study also focused on the level of dependancy on having a continuous stream of technological information from external sources, how the companies are finding other types of market data and how they are analyzing and getting insights from the data. The final part of the study was to understand the level ofmaturity of the Chinese market linked to Market Intelligence, and what aspects affect the value creation for the customers. The report´s findings show that it is important for a consultant firm to focus on customers with high level of autonomity, or the head quarter in those cases where the level of autonomity is low - this in order to best utilize the consultant firm´s resources.Even though the companies in the study were heavily focused on the technological know-how within their respective markets, this was the one aspect they found the least interest in receiving external help with from a consultat firm. Receiving insights about customers within existing and new market segments was instead valued much higher. To understand the competitors’ movements in the market was also of high interest, because of the difficulty of finding public data within a given market in China. In order to successfully enter the Chinese Market Intelligence market, a consultant firm like Kairos Future needs to choose the specific customer segments where they can contribute the most value though their product and service offering. The goal should be to focus on one segment at a time, getting satisfied customers that help Kairos Future get a good market reputation through the word-of-mouth effect, and thereby making future sales easier. When this is accomplished, the same strategy can be applied to a new customer segment.

This thesis is aimed at finding out how integration of IT systems creates value for companies and is conducted as a qualitative case study, where six companies are interviewed about their integration solutions. The interviewees were five CIOs and one Managing Director. Four of the companies interviewed have genuine Application Integration solutions, where a middleware platform is the hub of the integration system, while the remaining two used solutions based around a system of point-to-point integrations. The value of an integration solution will be considered a combination of the benefits an integration solution provides, openness aspects, and the price models used to pay for the system. Value is defined as what the company gains, in monetary terms, in exchange for what it pays for an offering (Anderson, Kumar, &amp; Narus, 2007). This definition further defines the attractiveness of an offering as the value minus the price. When discussing the value of an IT system, it is important to consider the difference between the potential value, which is the maximum the system can deliver with an ideal environment and usage, and the realised value, which is some fraction of the potential value that a company actually gains, of the system (Davern &amp; Kauffman, 2000; Smith &amp; Nagle, 2005). Affecting the realisation of potential value are certain factors, called conversion contingencies, which are things like preparation of implementation projects or efforts at using all aspects of a system. Benefits are analysed according to a framework that divides IT systems benefits into five categories: operational, managerial, strategic, IT infrastructure, and organisational benefits (Shang &amp; Seddon, 2000). These categories are focused around, respectively, productivity gains, enhanced planning capabilities, new strategic capabilities, better IT administration, and process improvements. We conclude that most companies gain several large benefits in the operational and managerial types, while the other three types have fewer reported benefits. We conclude that there seems to be quite a lot of unrealised potential value in the integration solutions, if the view of the potential of integration from the technological side is used. We also conclude that companies in certain environments and with more complex organisational structures seem to have a larger value potential than others, meaning they have more to potentially gain from an integration solution. For openness, five aspects of open source software are studied: lock-in, cost, security, flexibility/modifiability, and community. These aspects are mainly derived from literature on open source. The first conclusion we make regarding openness is that most of the CIOs seems not to be fully aware of what the term truly entails. Companies’ opinions regarding open source can be seen on a range between two extremes: those who want to modify or develop software and those who only want to use standard systems. The former category has more to gain from the aspects of cost and modifiability than the latter, but both categories can gain from the lock-in, security, and community aspects. The combination of factors that creates the price of an offering can be described as a price model. To study the value of price models of integration solutions, the SBIFT model (Iveroth, et al., 2013) is used, where the price model is divided into five dimensions, scope, base, influence, formula and temporal rights. None of the interviewed companies were satisfied with the alternatives for price models currently on the market. It was concluded that the dissatisfaction mostly stemmed from the facts that the companies had little opportunity to affect the price model, meaning they could not adapt it to better fit their internal conditions, the complexity of the license agreements, and that it was hard to get vendors to cite a price for a system. Price models that would be more attractive are e.g. models with a larger variable part, like transaction-based ones, or models that affect the time scale of the contract, even though no single model seemed more attractive to all companies.

Value based management is a process that can be used to determine a business’s value drivers. It attempts to determine how the drivers link to value creation, and then break down the value drivers into achievable activities that can be pursued by employees. Due to strict medicine pricing regulations in the country, it is becoming increasingly difficult for pharmacy businesses to stay profitable. This study set out to develop a value based management framework that could be used by pharmacy management in order to maximise value creation in the business and help ensure its survival despite the strict pricing regulations. Secondary objectives were to contextualise the term “value based management”, to identify the value drivers in a pharmacy business and to determine the extent to which value based management and its principles are being applied in pharmacies in the North West region of South Africa. The research study began in the literature where the term “value based management” was introduced and a literature study was done to conceptualise the term by investigating why value based management and value creation were important. Value based management metrics, the components of value based management; and key success factors for the implementation of value based management principles were investigated. A further literature study was done to identify possible value drivers in a pharmacy business. An empirical study was conducted among registered pharmacists in the North West region of South Africa. Using the value drivers identified in the literature study as constructs, a questionnaire was designed to explore participants’ level of exposure to (and knowledge of) value based management as well as the extent to which the principles of value based management were being applied at the pharmacy businesses where participants were employed. Analysis of the responses showed the questionnaire to be reliable and valid. The results of the study highlighted that many respondents’ lack knowledge regarding the constructs (value drivers), cost price in the dispensary and cost of wages. Constructs (value drivers) that were better understood included product mix in the front shop and debtors’ control. Constructs (value drivers) that were best managed at the pharmacies where participants were employed, were cost price in the front shop and stock control. Constructs (value drivers) that were not as thoroughly managed were sales growth in the front shop and cost of wages. Conclusions regarding the findings of the research study were presented and recommendations were made. The research study was evaluated opposite the primary and secondary objectives with the conclusion that both were achieved. Finally, recommendations for further research into value based management and the application of its principles in pharmacy businesses were proposed. / Thesis (MBA)--North-West University, Potchefstroom Campus, 2013.