Accounting field Essay Example | Topics and Well Written Essays - 2500 words

Accounting field - Essay Example rategic capability which includes a typical know-how , a set of skills , or a special insight that creates high returns and competitive advantage , fosters organizational agility that is difficult to duplicate.( Bruner, 2004,p.914). A study by McKinsey Consultants has revealed that companies can undertake non-synergic acquisition deals to their advantages. It has found that a diverse group of business organizations like Sara Lee, Thermo Electron and Clayton, Dubliner & Rice have developed astonishingly and seized continued returns of 18 % to 35% per annum by venturing into non-synergic business acquisitions. Further, a study conducted by Harvard Business School also corroborates that companies can venture into non-synergistic advantageously. Hyan (1989) revealed that about fifty percent of all acquisitions are planned to be only partially taxable or to be completely tax-free. Gonzalez et al (1998) held that more probable to be targets of acquisition by foreign companies were undervalued U.S companies. Kish and Vasconcelos (1998) viewed that a formidable relationship existed between exchange rate movements and acquisition activity. (Bruner, 2004, p107). As competitive businesses tackle globalization while attempting to remain competitive and to maintain productivity when confronted with emerging markets, they encounter demoralizing difficulties particularly when attempting to expand internationally. (Sinha , Khanna & Phalepu 2005). Acquisition has become an active strategy nowadays as it enables the fear of being taken over and corporate revitalization keeps managers on their toes. (Japanese firms 2007). (Lloyd, 2006, p1). As per various earlier empirical studies, a business acquisition helps to attain a strategic capability which includes a typical know-how, a set of skills, or a special insight that creates high returns and competitive advantage, fosters organizational agility that is difficult to duplicate. Whether the acquisitions have transformed the