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Market value effects of acquisitions involving internet firms: a resource-based analysis

While most prior research suggests that the average change in market value of acquiring firms varies closely around zero, recent research grounded in the resource-based view and organizational learning theory identify positive returns to acquirers. We contribute to this literature by focusing on acq...

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Published in:	Strategic management journal 2006-10, Vol.27 (10), p.899-913
Main Authors:	Uhlenbruck, Klaus, Hitt, Michael A., Semadeni, Matthew
Format:	Article
Language:	English
Subjects:	Acquisitions Alliances Assets Business management Business structures Corporate mergers Corporate strategies Customer bases Economic resources Electronic commerce Emerging technology Enterprises Firm theory Internet Knowledge acquisition Management science market performance mergers and acquisitions Valuation Value
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description	While most prior research suggests that the average change in market value of acquiring firms varies closely around zero, recent research grounded in the resource-based view and organizational learning theory identify positive returns to acquirers. We contribute to this literature by focusing on acquisitions of Internet firms and the potential for the transfer of scarce resources. We hypothesize that acquisitions made by offline firms of Internet firms and by Internet firms of other Internet firms lead to positive market valuation for the acquirer. Results of an event study of 798 acquisitions of Internet firms provided support for these predictions. We also find that prior alliances with online firms do not reduce the gains from such acquisitions to offline firms.
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source	International Bibliography of the Social Sciences (IBSS); Wiley; JSTOR Archival Journals and Primary Sources Collection
subjects	Acquisitions Alliances Assets Business management Business structures Corporate mergers Corporate strategies Customer bases Economic resources Electronic commerce Emerging technology Enterprises Firm theory Internet Knowledge acquisition Management science market performance mergers and acquisitions Valuation Value
title	Market value effects of acquisitions involving internet firms: a resource-based analysis
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