The effects of foreign acquisitions on the value of industry peers

Name: The effects of foreign acquisitions on the value of industry peers
Author: Yılmaz, Ümit

İsim	The effects of foreign acquisitions on the value of industry peers
Yazar	Yılmaz, Ümit
Basım Tarihi:	2023-03
Basım Yeri	- Cambridge University Press
Konu	Foreign acquisitions, Industry peers, Stock returns
Tür	Süreli Yayın
Dil	İngilizce
Dijital	Evet
Yazma	Hayır
Kütüphane:	Özyeğin Üniversitesi
Demirbaş Numarası	0022-1090
Kayıt Numarası	d2fa1004-aa8e-4f5f-b817-64559b947cf8
Lokasyon	International Finance
Tarih	2023-03
Örnek Metin	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

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The effects of foreign acquisitions on the value of industry peers

Yazar Yılmaz, Ümit

Basım Tarihi 2023-03

Basım Yeri - Cambridge University Press

Konu Foreign acquisitions, Industry peers, Stock returns

Tür Süreli Yayın

Dil İngilizce

Dijital Evet

Yazma Hayır

Kütüphane Özyeğin Üniversitesi

Demirbaş Numarası 0022-1090

Kayıt Numarası d2fa1004-aa8e-4f5f-b817-64559b947cf8

Lokasyon International Finance

Tarih 2023-03

Örnek Metin 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