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Research Overview
Impact of Merger\Acquisition on Firms Profitability
Case study of Pakistan GlaxoSmithKline(GSK) Here we analyze the Dividend with respect to Sales Volume. Hypothesis:
There is a Positive relationship between Acquisition of Firm and Firm Profitability
39,566.70
33,228.40 27,181.78 24,529.58 22,415.16 23,438.46 24,417.42 21,750.15 18,916.19 13,403.22 6,993.03 2001 1 2002 2 8,101.06 8,866.96 9,416.88 10,088.25 10,610.88 28,936.34
14,719.13
2003
3
2004 4
2005 5
2006 6
2007 7
2008 8
2009 9
2010 10
Pharmacuetical Industry
GSK Contribution
13%
-Pharmaceutical industry dominate by small number of large firms (Abbot, SanofiAventis , Searle, Wyeth Pakistan) Also many firms make up the industry.
-Pharmaceutical industry has high barriers to entry also exit. -GSK has high quality products because their advance research & Development so they have loyalty from customer also they release differential products and homogenous products in to market. This pharmaceutical industry has price stability within the market. Company likes GSK in pharmaceutical industry can't change their products prices to increase profit. When
considering all these facts, it's clearly shown that a one of the major pharmaceutical industry "GlaxoSmithKline Pharmaceutical industry Ltd." comes under the "Oligopoly" market structure.
Results
Conclusion
To some extent Hypothesis is Accepted as the F statistic result i.e 0.000 The variation occur in Dividend is not due the change in the Sales volume. The Coefficient of Correlation R with the value 0.587 show the average relationship. R-square, indicates there are some more factors which are influencing the Dividend payout. The error of your estimate is considerably lower, about 19.083