Stock Market Reactions to Knowledge-Motivated Acquisitions

Ricardo Romero Gerbaud, Anne S. York

Research output: Chapter in Book/Report/Conference proceedingChapter

5 Scopus citations

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 languageEnglish (US)
Title of host publicationAdvances in Mergers and Acquisitions
EditorsCary Cooper, Sydney Finkelstein
Pages127-156
Number of pages30
DOIs
StatePublished - Jul 3 2007

Publication series

NameAdvances in Mergers and Acquisitions
Volume6
ISSN (Print)1479-361X

All Science Journal Classification (ASJC) codes

  • Business and International Management

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    Gerbaud, R. R., & York, A. S. (2007). Stock Market Reactions to Knowledge-Motivated Acquisitions. In C. Cooper, & S. Finkelstein (Eds.), Advances in Mergers and Acquisitions (pp. 127-156). (Advances in Mergers and Acquisitions; Vol. 6). https://doi.org/10.1016/S1479-361X(07)06006-1