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:

Frequency Measure

A metric used to evaluate how often an event occurs, such as the number of times an advertisement is shown.

Super Bowl

An annual championship game of the National Football League (NFL), considered the highest level of professional American football in the United States.

Target Audience

A specific group of consumers identified as the intended recipient of an advertising or marketing message.

Frequency

Measure of how often the audience is exposed to a communication within a specified period of time.