Stock Market Reactions to Knowledge-Motivated Acquisitions

Ricardo Romero Gerbaud, Anne S. York

Research output: Chapter in Book/Report/Conference proceedingChapter

5 Scopus citations


This study uses a new, fine-grained, firm-based measure of target resources to investigate the relationship between target resource type and acquirer stock market performance. Our findings suggest that the market punishes acquirers of knowledge-based resources more than those that buy property-based resources due to the perceived uncertainty regarding the value of targets' knowledge resources. In support of the underlying uncertainty argument, we find that managers announcing knowledge-based mergers provide more information in their press releases than those announcing property-based transactions. While prior studies have suggested that resource relatedness may moderate the resource type and acquisition performance link, our findings do not support either a direct or moderating relationship.

Original languageEnglish
Title of host publicationAdvances in Mergers and Acquisitions
Number of pages30
Publication statusPublished - 2007

Publication series

NameAdvances in Mergers and Acquisitions
ISSN (Print)1479361X


All Science Journal Classification (ASJC) codes

  • Business and International Management

Cite this

Gerbaud, R. R., & York, A. S. (2007). Stock Market Reactions to Knowledge-Motivated Acquisitions. In Advances in Mergers and Acquisitions (Vol. 6, pp. 127-156). (Advances in Mergers and Acquisitions; Vol. 6).