We found a match
Your institution may have rights to this item. Sign in to continue.
- Title
The Effects of Foreign Acquisitions on the Value of Industry Peers.
- Authors
Yilmaz, Umit
- Abstract
This article 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.
- Subjects
MERGERS &; acquisitions; STOCK prices; FOREIGN business enterprises; ECONOMIC competition
- Publication
Journal of Financial & Quantitative Analysis, 2024, Vol 59, Issue 4, p1849
- ISSN
0022-1090
- Publication type
Article
- DOI
10.1017/S0022109023000339