TITLE

Revealing Returns: Do Rival Firm Share Prices Tell Us Anything About the Competitive Advantage of Acquisitions?

AUTHOR(S)
Largay, III, James A.; Ran Zhang
PUB. DATE
May 2009
SOURCE
Academy of Management Perspectives;May2009, Vol. 23 Issue 2, p100
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
The article reports on a study that examined the effect of the announcements of business acquisitions on rival companies' share prices, as well as management's motives for the consolidation and merger of corporations. Researcher Evrim Akdogu of Ko� University in Istanbul, Turkey focused on mergers in the telecommunication industry. Akdogu found that acquisitions are a form of corporate restructuring that produces a competitive advantage for the acquiring firm and creates costs for rival companies that are not merging. She also found that 178 deals out of the 273 acquisitions studied were horizontal or in the same industry.
ACCESSION #
39985546

 

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