In a Study of the Effect of International Acquisitions on the Stock

question 26

Multiple Choice

In a study of the effect of international acquisitions on the stock prices of U.S.firms,U.S.acquiring firms with information-based intangible assets experience a significantly positive stock price reaction upon foreign acquisition.

• A)This is consistent with the finding that the market value of the firm is positively related to its multinationality because of the firm's intangible assets,such as R&D capabilities,with public good nature.
• B)It is not the multinationality per se that contributes to the firm's value.
• C)Their empirical findings support the (forward-)internalization theory of FDI.
• D)all of the options

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Definitions:

Clarifying Expectations

The process of discussing and agreeing on the specific outcomes, behaviors, and conditions expected from a task or relationship.

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The process of obtaining messages or information that has been stored or transmitted.