This research aims to communicate new results of empirical investigations to learn about the relationship between determination of controlling an acquired firm's capital, assets and brand versus its capability of innovation and ex post performance of Vietnam's M&A industry in the 2005-2012 period. The analysis employs a categorical data sample, consisting of 212 M&A cases, and performs a number of logistic regressions with significant results being reported on relationships between pre-M&A strategic pursuit of innovation (versus capital/physical assets) of the acquired and post-M&A performance. In addition, pre-M&A capital expenditures tend to cause poor post-M&A performance. As a general conclusion, this study shows that creative performance can be a factor to pursue in M&A transactions, which suggests the need to emphasize capable and willing human capital. However, in a wave of M&A where there is an overwhelming emphasis on assets and brands, the innovation factor's impact is limited.

This research aims to communicate new results of empirical investigations to learn about the relationship between determination of controlling an acquired firm's capital, assets and brand versus its capability of innovation and ex post performance of the rising Vietnamese M&A industry in the 2005-2012 period. The analysis employs a categorical data sample, consisting of 212 M&A cases reported by various information sources, and performs a number of logistic regressions with significant results as follows.Firstly, the overall relationship between pre-M&A pursuit's determination on acquiring resources and performance of the post-M&A performance is found significant. There exist profound effects of a 'size matters' strategy in M&A ex post performance. When there is an overwhelming 'resources acquiring' strategy, the innovation factor's explanatory power becomes negligible.Secondly, for negative performance of post-M&A operations, the emphasis on both capital base and asset size, and the brand value at the time of the M&A pursuit is the major explanation in the post-M&A period. So does the absence of innovation as a goal in the pre-M&A period. These two insights together are useful in careful M&A planning.Lastly, expensive pre-M&A expenditures tend to adversely affect the post-M&A performance. As a general conclusion, this study shows that innovation can be an important factor to pursue in M&A transitions, together with the need to emphasize and find capable and willing human capital, rather than a capital base (equity or debt) and existing values of the acquired brands.