Author
Yılmaz, Ümit
Publication Date
2023-03
Publication Place
-
Cambridge University Press
Subject
Foreign acquisitions, Industry peers, Stock returns
Type
Periodical
Language
English
Digital
Yes
Manuscript
No
Library
Özyeğin University
Library Asset ID
0022-1090
Record ID
d2fa1004-aa8e-4f5f-b817-64559b947cf8
Library Location
International Finance
Date
2023-03
Sample Text
This paper studies how industry peers' stock prices respond when another firm in the industry is acquired by a foreign firm. The average stock price reactions of industry peers in horizontal foreign acquisitions around deal announcements are significantly negative. Peers' returns are more negative in growing, less specialized, and competitive industries. Moreover, the negative stock price reactions of industry peers are related to future decreases in their operating performance. Overall, these results suggest that foreign acquisitions have strong competitive effects for the industry peers of U.S. target companies.
DOI
10.1017/S0022109023000339
