Does Terrorism Affect Acquisitions?

نویسندگان

چکیده

Using terrorist attacks as an exogenous shock to uncertainty, we provide evidence that firms located near terrorism-stricken areas are less likely takeover targets for two years after the attack and receive lower acquisition premiums. The latter finding is reflected in target firm abnormal returns synergy gains. Additionally, areas, associated with a share of synergies, withdrawn deals rise, acquirers more get involved acquisitions different metropolitan statistical than their own or acquire faraway firms. We attribute our results real options theory, which predicts high uncertainty increases value option delay investments. show impact on human capital acquirer CEO fear potential sources terrorism-induced former source prevailing over latter. This paper was accepted by Gustavo Manso, finance.

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ژورنال

عنوان ژورنال: Management Science

سال: 2022

ISSN: ['0025-1909', '1526-5501']

DOI: https://doi.org/10.1287/mnsc.2022.4506