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

question 36

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 above

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Definitions:

Calcium Influx

The process of calcium ions entering a cell, which can trigger various cellular activities including muscle contraction and neurotransmitter release.

Tissues Arrangement

The organizational structure of tissue in an organism, contributing to its form and function.

Meninges

The three layers of protective tissue (dura mater, arachnoid mater, and pia mater) that cover the brain and spinal cord.

Central Canal

A fluid-filled channel in the center of the spinal cord, part of the central nervous system's cavity.