Acquisition Price Research Articles

Designing Net Asset-Based Income-Splitting Rules under Dual Income Tax

Abstract This article revisits the income-splitting regulations within the Nordic dual income tax framework. These regulations were introduced to counteract the inclination to transfer income between labor and capital income tax bases. They involve imputing a return on equity, considered as capital income, and taxing the residual portion at rates similar to those imposed on labor income. There are primarily two methods for computing imputed capital income. One method involves imputing a return based on the shares’ acquisition price (implemented in Sweden and Norway), while the other calculates a return using the net book assets of the company (utilized in Finland). This study examines the economic implications of the net asset-based splitting approach, an area not extensively explored in earlier literature. Our findings suggest that with appropriate selection of tax-parameter values, the net asset-based splitting system embodies the fundamental characteristics of a neutral corporate tax system akin to the ACE corporation tax. Consequently, our analysis indicates that the issues regarding incentive concerns in the Finnish taxation of closely held companies, highlighted in previous studies, stem more from erroneous parameter values rather than flawed underlying principles.

Rare earth recycling and remanufacturing: Impacts on oligopoly markets and industry development from a closed-loop supply chain perspective

The recycling of rare earth elements (REEs) yielded a dual benefit by alleviating supply constraints and contributing to environmental preservation. Independent recyclers (IRs), upon extracting REEs from waste materials, not only supplied the recovered REEs to the REE conglomerates but also engaged in competitive relationships by remanufacturing REE products. This study established a closed-loop supply framework, allowing the IR flexibly to choose between remanufacturing or direct sales strategies. Using the Cournot model under inequation constraints and real market data, to explores the impact of REE acquisition prices and recycling technologies on the closed-loop supply chain (CLSC) and society. The results indicated that: (1) The recycling mode and technology do not affect market share. Compared to the IR, REE conglomerate exhibit significant monopolistic advantages, occupying at least 85.1% of the market share, which can increase to a maximum of 98% as acquisition prices rise. (2) The acquisition price of recycled REE has an “inverse U-shaped” relationship with the profits of REE conglomerate and a positive relationship with the profits of IR. (3) The recovery rate is negatively related to the profits of REE conglomerate and positively related to the profits of IR. Increasing the REE recovery rate will enhance the profitability of the IR. (4) In terms of social effects, higher acquisition price of recycled REE continuously reduce consumer surplus and social welfare. Although the REE recovery rate does not affect consumer surplus, it has a significant positive impact on social welfare.

ANALYSIS OF ACCOUNTING TREATMENT OF BIOLOGICAL ASSETS BASED ON PSAK NO. 69 AT LATONANG FARM PAREPARE CITY

This research aims to determine the accounting treatment of biological assets based on PSAK No. 69 at Latonang Farm and to determine the accounting treatment of biological assets at Latonang Farm from a sharia perspective as well as the implications of implementing PSAK No. 69 to the financial statements of Latonang Farm's biological assets. This was done to analyze the suitability of the accounting treatment for Latonang Farm's biological assets with PSAK No. 69. This research uses qualitative methods with a case study approach and field research. The data collection and data processing techniques use observation, interview and documentation methods. The validity test of the data used in this research is the credibility test. Meanwhile, the data analysis techniques used are data reduction, data presentation and drawing conclusions. The research results show that the accounting treatment of biological assets is based on PSAK No. 69 at Latonang Farm is generally in line with the provisions of PSAK No. 69. However, there are differences regarding the measurement of fair value. Latonang Farm does not revaluate the value of biological assets, but instead uses the acquisition price with adjustments at the end of each period. This approach was chosen because of the difficulty of measuring the value of biological assets precisely. This action is permitted in accordance with the provisions of PSAK No. 69 paragraph 30. Apart from that, the accounting treatment of biological assets at Latonang Farm is also in accordance with the sharia perspective, where the principles of honesty, trust and benefit are applied.

How does the power structure affect the acquisition price and inventory decisions in the reverse supply chain

With growing concerns about environmental sustainability, reverse supply chains play a crucial role in recycling, remanufacturing, and reducing waste. Investigating the power structure’s impact on decisions related to acquisition prices and inventory management can provide insights into the integration of sustainable practices. This study analyzes a reverse supply chain with a supplier and a remanufacturer, in which the supplier provides the remanufacturer with sorted used cores. We investigate the acquisition pricing and inventory decisions under different power structures (supplierled Stackelberg model, remanufacturer-led Stackelberg model) through game theory analysis. We first establish the centralized model to explore optimal acquisition decisions and profit of the total system. Then we evaluate the acquisition quantity, wholesale prices, the profit of supplier and remanufacturer in the supplier-led model and in the remanufacturer-led model. Finally, the impact of power structure on the performance of supplier and remanufacturer are explored by numerical analysis, as well as the supply chain system. Our significant findings show that (i) the total profit of the supplier-led and remanufacturer-led reverse supply chain are less than the centralized model due to the double marginalization; (ii) the remanufacturer-led reverse supply chain is superior to the supplier-led model reverse supply chain; (iii) the selected grades in the supplier-led model is proved the same as that in the remanufacturer-led model, which could not been affected by the wholesale price; (iv) the greater the inventory risk (the uncertainty in demand), the greater the profit share for the remanufacturer (supplier) in the supplier-led (remanufacturer-led) model.

Measuring the Quality of Mergers and Acquisitions

We develop a measure of merger and acquisition (M&A) quality using accounting theory. This measure, implied return-on-equity improvement (IRI), quantifies the minimum improvement in the target’s post-acquisition return on equity (ROE) the acquirer must attain to break even on the acquisition price. Employing a large sample of M&As from 1980 to 2018, we find that a high IRI is, on average, less attainable ex post and predicts worse acquirer financial performance. The acquirer’s ROE growth over the first three years after the M&A is 11 percentage points lower for high-IRI M&As compared with low-IRI M&As. Worse high-IRI acquirer performance is observable through higher operating costs, tighter financial constraints, lower investments, and larger and more frequent goodwill impairments. We also find that IRI increases with acquiring chief executive officers’ overconfidence, incentive misalignment, and difficulty in estimating synergies; IRI decreases with acquirers’ financial discipline and due diligence effort. As such, overestimating synergies and managerial incentives that drive overpayment are potential mechanisms underlying IRI’s negative association with acquirers’ post-M&A performance. This paper was accepted by Eric So, accounting. Supplemental Material: The online appendix and data files are available at https://doi.org/10.1287/mnsc.2023.01225 .

Nonpecuniary Benefits: Evidence from the Location of Private Company Sales

Abstract This paper investigates whether acquisition prices reflect a specific set of nonpecuniary benefits preferred by entrepreneurs: the quality of life (QOL) associated with the business location. Using data on private firm acquisitions, we find that target firms in high-QOL cities sell for a 14% to 20% premium. Traditional financial factors do not explain this premium, which dissipates when the buyer is unlikely to have preferences for high-QOL locations. Using wage-to-housing cost differentials to decompose local amenities and data on migration patterns, we find that QOL amenities have a greater impact on entrepreneurs’ location decisions relative to wage workers. (JEL G02, G32, G34, J32, L26, R39) Received: 27 February 2022; Editorial decision: 29 January 2024 Editor: Camelia Kuhnen Authors have furnished an Internet Appendix, which is available on the Oxford University Press Web site next to the link to the final published paper online.

주주과세제도의 문제점과 개선방안

[Purpose] The distribution of company property to shareholders has become smoother since the revision of the Commercial Act in 2011, including allowing reserve reduction dividends. However, the related shareholder taxation system still needs to be revised. The purpose of this study is to improve the shareholder taxation system in case of reserve reduction dividends, paid－in capital increase, and capital reduction. with awareness of the problem that the shareholder taxation system is inadequate. As a result, this study aims to propose a realistic tax law amendment.
 [Methodology] Analysis of relevant overseas cases (USA, Germany, Japan) and related previous studies were investigated and presented.
 [Findings] First, there is an inadequacy in that when dividends are reduced by reserve, if dividends exceed the acquisition price of stocks held by shareholders, taxation is not imposed. In relation to this, the Corporate Tax Act stipulates that taxation will be imposed from 2023, but the Income Tax Act has not yet been revised. Accordingly, a revision of the Income Tax Act was proposed. Second, in Korea, capital reduction is treated as dividend income and taxed. However, the economic nature of capital reduction is closer to the transfer of stocks by shareholders. The current calculation structure of fictitious dividend income is also very similar to the capital gains method. Therefore, this study proposed that fictitious dividends be taxed as capital gains under the Income Tax Act. Third, if the compensation received due to resignation, withdrawal, or reduction in investment exceeds the acquisition price of the stock, it is taxed as a fictitious dividend. At this time, there is a problem in that dividend income varies depending on the acquisition price. Accordingly, this study proposed dividing the profits distributed to shareholders into the return of capital and the distribution of profits.
 [Implications] This study has implications in that it suggests ways to improve the shareholder taxation system that can minimize friction with the current tax law and increase legal stability.

Valuation of the Fair Market Value of the Shares of PT Link Net Tbk in Connection with the Acquisition of Shares by PT XL Axiata Tbk in 2022 Using the Discounted Cash Flow (DCF) and Abnormal Income Method

Corporate takeover actions (acquisitions) carried out by companies are always in the spotlight of the capital market public, because corporate acquisition actions are classified as material transactions that require very large financing, and it is not uncommon for there to be conflicts of interest in their implementation. However, sometimes there can be cases where a company acquires another company in the hope of gaining synergies but instead incurs losses, which may be due to an unreasonable acquisition price that can harm many parties including the public and shareholders. This can of course be prevented by assessing the performance of the company to be acquired previously and assessing the company's fair market (valuation). This research was conducted to analyze the fair market value of 20% of the shares of PT Link Net Tbk in connection with the planned acquisition by PT XL Axiata Tbk using the Discounted Cash Flow and Abnormal Income methods and to analyze the price offered by PT XL Axiata Tbk to acquire 20% of the shares of PT Link Net Tbk is classified as fair or not. The research results show that in the valuation using the Discounted Cash Flow (DCF) method, based on the results of calculating the fair market value of 20% of PT Link Net Tbk amounting to IDR 2,795,896 million or IDR 4,882 per share, while in the valuation using the Abnormal Income method, it is based on the results of calculating the value fair market 20% PT Link Net Tbk amounting to IDR 2,602,704 million or IDR 4,545 per share. If we compare the transaction value of the purchase of PT Link Net Tbk shares by PT XL Axiata Tbk which is IDR 4,800 per share, the transaction value is considered fair in both methods, both the Discounted Cash Flow (DCF) and Abnormal Income methods.

Exploratory analysis of the economically justifiable price of nirsevimab for healthy late-preterm and term infants in Colombia.

Respiratory syncytial virus infection is the leading cause of lower respiratory infection globally. Recently, nirsevimab has been approved to prevent respiratory syncytial virus (RSV) infection. This study explores the economically justifiable price of nirsevimab for preventing RSV infection in Colombia's children under 1 year of age. A static model was developed using the decision tree microsimulation to estimate the quality-adjusted costs and life years of two interventions: a single intramuscular dose of nirsevimab versus not applying nirsevimab. This analysis was made during a time horizon of 1 year and from a societal perspective. The annual savings in Colombia associated with this cost per dose ranged from U$ 2.5 to 4.1 million. Based on thresholds of U$ 4828, U$ 5128, and U$ 19 992 per QALY evaluated in this study, we established economically justifiable drug acquisition prices of U$ 21.88, U$ 25.04, and U$ 44.02 per dose of nirsevimab. the economically justifiable cost for nirsevimab in Colombia is between U$ 21 to U$ 44 per dose, depending on the willingness to pay used to decide its implementation. This result should encourage more studies in the region that optimize decision-making processes when incorporating this drug into the health plans of each country.

Perlakuan Akuntansi Aktiva Tetap dan Penyajiannya dalam Laporan Keuangan Pada Toko Myhijab Cimahi

The purpose of this study is to determine the accounting treatment of tangible fixed assets and how they are presented in the financial statements of the Myhijab store, Accounting Treatment of tangible fixed assets and how they are presented in the financial statements in accordance with PSAK no. 16, and the impact of the implementation of PSAK no. 16 on the acquisition of profit and loss of the Myhijab store. The study was conducted using a quantitative descriptive method. Data collection techniques using interviews and documentation, then quantitative descriptive analysis was carried out. The results of the study show that the Myhijab store records the acquisition of tangible fixed assets based on the purchase price alone without taking into account other costs incurred to acquire tangible fixed assets so that the tangible fixed assets are ready for use. In accordance with PSAK no. 16, the recording of tangible fixed assets is based on their acquisition price, namely the purchase price plus the costs incurred to acquire tangible fixed assets so that the tangible fixed assets are ready for use. The impact of the implementation of PSAK no. 16 on the acquisition of profit and loss of the Myhijab store is an increase in profit in 2021 by Rp20,350,000.00.

Hospital Prices for Physician-Administered Drugs for Patients with Private Insurance

BackgroundHospitals can leverage their position between the ultimate buyers and sellers of drugs to retain a substantial share of insurer pharmaceutical expenditures.MethodsIn this study, we used 2020–2021 national Blue Cross Blue Shield claims data regarding patients in the United States who had drug-infusion visits for oncologic conditions, inflammatory conditions, or blood-cell deficiency disorders. Markups of the reimbursement prices were measured in terms of amounts paid by Blue Cross Blue Shield plans to hospitals and physician practices relative to the amounts paid by these providers to drug manufacturers. Acquisition-price reductions in hospital payments to drug manufacturers were measured in terms of discounts under the federal 340B Drug Pricing Program. We estimated the percentage of Blue Cross Blue Shield drug spending that was received by drug manufacturers and the percentage retained by provider organizations.ResultsThe study included 404,443 patients in the United States who had 4,727,189 drug-infusion visits. The median price markup (defined as the ratio of the reimbursement price to the acquisition price) for hospitals eligible for 340B discounts was 3.08 (interquartile range, 1.87 to 6.38). After adjustment for drug, patient, and geographic factors, price markups at hospitals eligible for 340B discounts were 6.59 times (95% confidence interval [CI], 6.02 to 7.16) as high as those in independent physician practices, and price markups at noneligible hospitals were 4.34 times (95% CI, 3.77 to 4.90) as high as those in physician practices. Hospitals eligible for 340B discounts retained 64.3% of insurer drug expenditures, whereas hospitals not eligible for 340B discounts retained 44.8% and independent physician practices retained 19.1%.ConclusionsThis study showed that hospitals imposed large price markups and retained a substantial share of total insurer spending on physician-administered drugs for patients with private insurance. The effects were especially large for hospitals eligible for discounts under the federal 340B Drug Pricing Program on acquisition costs paid to manufacturers. (Funded by Arnold Ventures and the National Institute for Health Care Management.)

Perlakuan Akuntansi Aset Biologis di Perumda Perkebunan Kahyangan Jember

This study aims to analyze the accounting treatment of biological assets and their compliance with the Financial Accounting Standards (PSAK 69) at Perumda Perkebunan Kahyangan Jember and complience accounting standards (PSAK) 69. The goal is to provide further evidence on the challenges of implementing PSAK 69 regarding biological assets, particularly plant-based biological assets. This research is qualitative in nature, characterized as a case study, utilizing data collection methods involving interviews, FGDs (Focus Group Discussions), and literature review. As a result of this research, the accounting treatment of biological assets at Perumda Perkebunan Kahyangan Jember aligns with PSAK 69 concerning recognition and disclosure in financial statements. However, concerning measurement, the biological assets are valued using historical costs as their acquisition price. The primary challenges faced by Perumda Perkebunan Kahyangan in measuring its biological assets stem from the absence of fair value standards and the high cost involved in valuing these assets.

Cost-effectiveness study of therapeutic approaches for mucosal leishmaniasis.

This study aimed to estimate the cost-effectiveness of four therapeutic approaches available for mucosal leishmaniasis in Brazil: miltefosine, meglumine antimoniate, combined with and without pentoxifylline, and liposomal amphotericin B. The perspective adopted was that of the Brazilian Unified National Health System (SUS). The outcome of interest was "cured patient", which was analyzed using a decision tree model. Estimates of direct costs and effectiveness were obtained from the scientific literature. Meglumine antimoniate alone was the base comparator strategy; liposomal amphotericin B showed an incremental cost-effectiveness ratio (ICER) of USD 7,409.13 per cured patient, and the combination of meglumine antimoniate with pentoxifylline presented an ICER of USD 85.13. Miltefosine was absolutely dominated, with higher cost and similar effectiveness when compared to meglumine antimoniate. Sensitivity analyses, varying the cost by ±25%, did not change the results. However, when the cost of miltefosine was estimated at less than USD 171.23, this strategy was dominant over meglumine antimoniate alone. The results confirm that treatment with liposomal amphotericin B remains the option with the highest ICER among the approaches analyzed. Miltefosine may be cost-effective based on the variation in the acquisition price, which deserves attention because it is the only available oral option. The non-accounting of other aspects prevent the use of these results immediately to support decision-making, but they point out the need to negotiate the prices of drugs available for mucosal leishmaniasis and indicates the need of encouraging technology transfer or other actions aimed at expanding the performance of the Brazilian national industrial complex.

Analisis Dan Perancangan Sistem Informasi Penilaian Harga Perolehan Barang Dagang Dengan Metode Moving Average

The Indrayana Jaya Outdoors store requires an accurate and timely information system for the valuation of the purchase price of merchandise so that the flow of information needed runs as expected. The method of determining the moving average price (Moving Average), the acquisition price is not carried out at the end of the period, but at every purchase transaction. The results of the problem analysis found many things that caused the goals of the system not to be achieved. In knowing the information on the inventory of merchandise in the warehouse, it takes a duration of more than 10 minutes because you must first find and collect the required data one by one. Recording data that is still in handwriting or using working papers also hinders officers from finding the information needed because the document is not legible or multiple writing errors are made. As well as to determine the selling price, the purchase price of the goods is only an estimate, so the possibility of receiving only a small profit. By using the Moving Average Method, Indrayana Jaya Outdoors Stores can process data and present information on the acquisition price of merchandise accurately and on time.

Strategic Tasks of State Support for the Post-War Development of the National Economy

The article highlights the main issues of government support for the post-war development of priority sectors of the national economy that are of strategic importance for sustainable economic development and national defense capabilities; and substantiates the corresponding instruments of fiscal support using the example of titanium industry. In the study, the strategic tasks of government support for the post-war development of national economy are considered from the standpoint of a comprehensive solution to the problems of forming an innovative foundation for economic renewal, ensuring the technological change, creation of a complete cycle of deep titanium processing and titanium production in Ukraine which will meet the needs of domestic demand and the entry of domestic producers into world markets. Ensuring changes in educational sphere in accordance with the real economy’s demand for technical specialists and professionals is seen as a part of a comprehensive industrial policy approach, and fiscal instruments for this purpose are proposed.
 The need to expand the list of instruments of government support for the development of strategic industries is substantiated. The list should include both measures of tax support for investment projects with significant investments provided for by current legislation, as well as grants, innovative transfers from the government budget, measures to support the export of innovative titanium products, and innovative corporate income tax benefit to stimulate innovations, training tax allowance to support business investment in human capital. Proposals to extend the instruments for financing priority sectors of Ukraine’s economic revival do not contradict the norms of EU legislation in the field of government aid.
 Possible measures for ordering the regulatory framework of the proposed in the article direct budgetary and indirect government support instruments for the innovative development of strategic sectors of the economy are outlined. In particular, changes to the Tax Code of Ukraine on the introduction of innovation and training allowances for corporate income tax, changes in the minimum useful life of innovative equipment, and tax credit recognition of VAT amounts in the acquisition prices of technology property rights and in the import of technology under a technology transfer agreement, as well as to the Resolution of the Cabinet of Ministers of Ukraine of January 24, 2020 No. 28 “On the provision of financial government support” in terms of increasing the volume of loans and reducing the cost of their servicing for business entities in the titanium industry.

Analisis Sistem Pembiayaan Murabahah pada PT. BPRS Al Washliyah Medan

This research was carried out at PT. BPRS Washliyah Medan. The aim of this research is to understand the murabahah financing system and process implemented by PT. BPRS Al-Washliyah Medan. Murabahah financing is a sale and purchase agreement for goods stating the acquisition price and profit agreed upon by the seller whose role in this case is the Bank and the buyer whose role is the customer/prospective customer for the customer's needs, with the flavone given Rp. 25,000,000 to Rp. 250,000,000. The principles of Murabahah financing are based on Islamic sharia and established legal provisions. Murabahah financing has apparently received a lot of responses from the public and business entities, but not many people and business entities understand the procedures for obtaining murabahah financing, even though marketing has been carried out by PT. SRB Washliya.

Product pricing and recycling mode considering competition under used product error classification

Sorting used products is an effective way for enterprises to improve resource utilization and increase profits, but the effects of sorting quality standards and classification errors on the sorting process requires attention. In light of the fact that in addition to recycling used products by themselves, enterprises may choose to outsource or compete with third parties for recycling, by constructing the game-theoretic model of manufacturer sorting, third-party recycler sorting and competitive sorting, this paper studies the impact of quality sorting standards and two types of classification errors on the decision-making and performance of supply chains under different modes. The results show that although a higher the quality sorting standard indicates a higher the acquisition price, and a lower the sales price of the product, for enterprises, a higher the quality sorting standard is not the better. Classification errors have opposite impacts on the profits of different recycling channels. Enterprises can optimize their performance by controlling error proportions in combination with their own sorting modes. Moreover, although the manufacturer sorting mode is superior to the third-party sorting mode, a third-party recycler participating in the recycling competition will not harm the manufacturer’s profits, and it can also make the recycler stricter in the sorting process, reduce the classification error proportions, and optimize the manufacturer’s profits and supply chain performance. These findings provide corresponding insights for enterprises in determining quality sorting standards and selecting sorting modes.

Ilgalaikio materialiojo turto įsigijimo apskaitos metodika

The article analyses the concept of fixed tangible assets and the process of accounting methodology. The main issues of accounting for fixed tangible assets are examined: methods of acquiring assets, initial recognition of assets, their assignment to an asset group, subsequent revaluation, and depreciation. The direct and indirect costs constituting the cost price of acquisition and production of fixed tangible assets are shown in detail. The results of the analysis revealed that the accounting of fixed tangible assets in the company complies with the provisions of the 12 Lithuanian financial reporting standards, but it is suggested to improve the methodology of determining the fair value of fixed tangible assets. Keywords: asset accounting, recognition criteria, business accounting standards, accounting methodology.

Analysis of the Murabahah contract financing system on People's Business Credit (KUR) at PT. Bank Syariah Indonesia Kcp. Sukabumi Sudirman

Murabahah financing is a transaction of selling goods by stating the acquisition price and profit (margin) agreed upon by the seller and buyer. Murabahah is a type of buying and selling that is permitted by sharia and is a business interaction or muamalat tijariyah. The legal basis for buying and selling Murabahah is found in the Qur'an, Al-Hadith and Fatwa of the National Sharia Council (DSN-MUI). Public knowledge about KUR financing has not been widely distributed, 7 out of 10 Prospective Customers do not know how the KUR application process is, Prospective Customers do not understand the KUR application procedure, Prospective Customers do not meet the requirements that have been set. This study aims to determine the Murabahah Financing System on People's Business Credit (KUR) and Analyze the feasibility of Murabahah Financing on People's Business Credit (KUR) at PT. Bank Syariah Indonesia Kcp. Sukabumi Sudirman. The method used in this study is qualitative research method with a descriptive approach. This study used primary and secondary data sources through observation, interviews and documentation. Based on the results of the study, it shows that the financing system for Murabahah contracts on People's Business Credit (KUR) uses a Murabahah bil wakalah contract. The system for applying for People's Business Credit (KUR) financing that is implemented at PT. Bank Syariah Indonesia Kcp. Sukabumi Sudirman is in accordance with the Standard Operating Procedures (SOP) set by the Financial Services Authority (OJK) which includes several stages, namely: the stage of submitting financing and verifying documents (Free Screening), the stage of financing analysis, the stage of visits (surveys), the stage of giving decisions (terms for financing approval), the stage of proof of documents and contracts, the stage of financing disbursement and the monitoring stage. In analyzing the feasibility of financing People's Business Credit (KUR) PT. Bank Syariah Indonesia has implemented the 5C Principles according to theory (M. L. I. Nasution, 2018), namely Character, Capital, Capacity, Conditions, Collateral (Guarantee).

Pricing and quality improvement strategies in a closed-loop supply chain with dual collection channel

This paper presents two-period closed-loop supply chain (CLSC) models considering demand with and without replacement sales. A manufacturer produces a new product using raw materials in the first period, and the manufacturer and a third party compete to collect used products in the second period. Further, the manufacturer produces an improved version of the new product using raw materials and returned-used products in the second period. The product is sold through a retailer in both periods. We propose a two-period Stackelberg game with the manufacturer as a leader to investigate the product’s pricing strategy and quality improvement level. It is shown that the quality improvement level improves with an increase in the sensitivity of return to the competitor’s acquisition price but deteriorates with an increase in sensitivity of return to the collector’s acquisition price. Finally, we implement a cross-shareholding coordination mechanism and observe an improvement in the quality level and profits of the manufacturer and the retailer.