Sovereign wealth funds investment effects on target firms' competitors |
| |
| Institution: | 1. American University of Sharjah, United Arab Emirates;2. HEC Montreal, Canada;3. UAE University, United Arab Emirates;1. Bank of Italy, International Relations Directorate, Via Nazionale 91, 00184 Rome, Italy;2. Università Cattolica, Facoltà di Scienze Politiche e Sociali, Largo Gemelli 1, 20123 Milan, Italy;1. Catholic University of Milan, Largo A. Gemelli 1, 20123 Milan, Italy;2. University of Amsterdam Business School, Plantage Muidergracht 12, 1018 TV Amsterdam, The Netherlands |
| |
| Abstract: | We investigate the impact of sovereign wealth funds acquisitions (SWFs) on the performance of target firms' competitors. We find a positive and significant impact of SWFs acquisitions on target firms' competitors. This means that market participants anticipate value creation in the targets competitors, due to likely expected restructuring activities. Further analysis shows that relatively large rivals, low leveraged rivals, rivals with highly correlated returns with those of their corresponding targets, rivals in less competitive industries show higher abnormal returns upon the acquisition announcement. Our results question the rationality of protectionism as legal barriers to sovereign wealth funds cross-border investments. |
| |
| Keywords: | |
| 本文献已被 ScienceDirect 等数据库收录！ |
|
