학술저널
THE PRICE REACTION OF RIVAL ADR FIRMS TO ACQUISITION ANNOUNCEMENTS FOR U.S. FIRMS
- People & Global Business Association
- Global Business and Finance Review
- Vol.8 No.1
-
2003.0633 - 47 (15 pages)
- 2
This study examines the intra-industry effect of acquisition announcements from 1980-1999 and finds that the effect on rival ADRs is different than previously found for U.S. firms. The cumulative abnormal return (CAR) for the two-clay announcement window (-1.0) is a statistically significant -0.54% while U.S. firms generally have positive abnormal announcement returns. Cross-sectional regression analysis shows that subsequent acquisition announcements in the same industry have a positive stock-price impact for ADR rivals and that European firms have a greater positive response than non-European firms do.
Abstract
INTRODUCTION
LITERATURE REVIEW AND HYPOTHESES
SAMPLE
METHODOLOGY
REGRESSION RESULTS
CONCLUSION
REFERENCES
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