Abstract
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 language | English |
|---|---|
| Title of host publication | Advances in Mergers and Acquisitions |
| Pages | 127-156 |
| Number of pages | 30 |
| Volume | 6 |
| DOIs | |
| State | Published - 2007 |
Publication series
| Name | Advances in Mergers and Acquisitions |
|---|---|
| Volume | 6 |
| ISSN (Print) | 1479361X |
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All Science Journal Classification (ASJC) codes
- Business and International Management
Cite this
Stock Market Reactions to Knowledge-Motivated Acquisitions. / Gerbaud, Ricardo Romero; York, Anne S.
Advances in Mergers and Acquisitions. Vol. 6 2007. p. 127-156 (Advances in Mergers and Acquisitions; Vol. 6).Research output: Chapter in Book/Report/Conference proceeding › Chapter
}
TY - CHAP
T1 - Stock Market Reactions to Knowledge-Motivated Acquisitions
AU - Gerbaud, Ricardo Romero
AU - York, Anne S.
PY - 2007
Y1 - 2007
N2 - 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.
AB - 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.
UR - http://www.scopus.com/inward/record.url?scp=34347253857&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=34347253857&partnerID=8YFLogxK
U2 - 10.1016/S1479-361X(07)06006-1
DO - 10.1016/S1479-361X(07)06006-1
M3 - Chapter
SN - 0762313811
SN - 9780762313815
VL - 6
T3 - Advances in Mergers and Acquisitions
SP - 127
EP - 156
BT - Advances in Mergers and Acquisitions
ER -