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The Impact of Acquisitions on New Technology Stocks: The Google–Motorola Case

Onglets principaux

Gao, Renfei Wang, Cindy Hafner, Christian [UCL]

This paper analyzes the impact of the recent acquisition of Motorola by Google on the subsequent performance of stock returns using an event study methodology. We obtain empirical results by a two-stage regression, by which the impact of market and industry effects can be controlled for. Our findings suggest that the Motorola takeover led to negative and significant excess returns to Google, but positive and highly significant excess returns to Motorola. Additionally, while the event led to significantly positive excess returns to direct competitors, it did not have a strong impact on indirect competitors, suggesting that the importance of the event was restricted to related industries.

Type de document Article de périodique (Journal article) – Article de recherche
Type d'accès Accès interdit
Année de publication 2014
Langue Anglais
Information sur le périodique "Annals of Financial Economics" - Vol. 9, no. 2, p. 3-35 (2014)
Peer reviewed oui
Editeur World Scientific Publishing Co. Pte. Ltd. (Singapore)
issn 2010-4952
e-issn 2010-4960
Statut de la publication Publié
Affiliations UCL - SSH/LIDAM/ISBA - Institut de Statistique, Biostatistique et Sciences Actuarielles
Liens
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Référence bibliographique Gao, Renfei ; Wang, Cindy ; Hafner, Christian. The Impact of Acquisitions on New Technology Stocks: The Google–Motorola Case. In: Annals of Financial Economics, Vol. 9, no. 2, p. 3-35 (2014)
Permalien http://hdl.handle.net/2078.1/152630