A System Dynamics Approach for Mergers and Acquisitions in High-Tech Industry with Financial Information: Case of Google acquiring Motorola Mobility

• Main Authors: Vong, Wai-Kei, 黃偉祺
• Other Authors: Cheng, Li-Ping
• Format: Others
• Language: zh-TW
• Published: 2012
• Online Access: http://ndltd.ncl.edu.tw/handle/34859850371818476887

碩士 === 國立交通大學 === 財務金融研究所 === 100 === M&A is a Dynamic Decision Process (or Strategy) between corporations. There are many motivations or purposes for a corporation acquiring others, especially, in High-Tech Industry. In High-Tech Industry, it is quite often that corporations acquire others only focus on obtaining others’ new technologies, new product lines, goodwill or patents, etc. Based on these purposes of M&A, it implies that High-Tech corporations pay most of their attention to their R&D. Therefore, the R&D investing policy should be one of the most important policies in the High-Tech corporations. However, the corporation should face to many risks when they decided to make a deal. The decision maker should pay full attention to the dynamic change of their financial position avoiding the failure of the Deal. And the Dynamic financial statements should be the best proxy for the decision maker to get the dynamic change of their financial positions. According to these reason, this study uses system dynamics and financial information (policies) to analyze the case of M&A in High-Tech Industry. Under this method, the system can estimate the future’s financial statements for the corporation. However, only adding intangible asset, goodwill and R&D Expenses as the accounting items in the financial statement may not fully describe the real status of the High-Tech Industry. Therefore, our study adds the Researcher’s Learning Effect to describe the High-Tech Industry completely. Using the model described above to analyze the case of Google acquiring Motorola Mobility and generates their consolidated financial statements during the simulating period under different financial policies to achieve the goal of analyzing the case of M&A in High-Tech Industry.