Stock Market Reactions to Knowledge-Motivated Acquisitions

Ricardo Romero Gerbaud, Anne S. York

Research output: Chapter in Book/Report/Conference proceedingChapter

5 Citations (Scopus)

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
Title of host publicationAdvances in Mergers and Acquisitions
Pages127-156
Number of pages30
Volume6
DOIs
StatePublished - 2007

Publication series

NameAdvances in Mergers and Acquisitions
Volume6
ISSN (Print)1479361X

Fingerprint

Stock market reaction
Resources
Knowledge-based
Perceived uncertainty
Press releases
Knowledge resources
Stock market performance
Uncertainty
Managers
Mergers

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). https://doi.org/10.1016/S1479-361X(07)06006-1

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 proceedingChapter

Gerbaud, RR & York, AS 2007, Stock Market Reactions to Knowledge-Motivated Acquisitions. in Advances in Mergers and Acquisitions. vol. 6, Advances in Mergers and Acquisitions, vol. 6, pp. 127-156. https://doi.org/10.1016/S1479-361X(07)06006-1
Gerbaud RR, York AS. Stock Market Reactions to Knowledge-Motivated Acquisitions. In Advances in Mergers and Acquisitions. Vol. 6. 2007. p. 127-156. (Advances in Mergers and Acquisitions). https://doi.org/10.1016/S1479-361X(07)06006-1
Gerbaud, Ricardo Romero ; York, Anne S. / Stock Market Reactions to Knowledge-Motivated Acquisitions. Advances in Mergers and Acquisitions. Vol. 6 2007. pp. 127-156 (Advances in Mergers and Acquisitions).
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