The source of abnormal returns from strategic alliance announcements

Brooke, Jesse and Oliver, Barry (2005) The source of abnormal returns from strategic alliance announcements. Pacific-Basin Finance Journal, 13 2: 145-161. doi:10.1016/j.pacfin.2004.07.003

Author Brooke, Jesse
Oliver, Barry
Title The source of abnormal returns from strategic alliance announcements
Journal name Pacific-Basin Finance Journal   Check publisher's open access policy
ISSN 0927-538X
Publication date 2005-03
Sub-type Article (original research)
DOI 10.1016/j.pacfin.2004.07.003
Volume 13
Issue 2
Start page 145
End page 161
Total pages 17
Place of publication Amsterdam, Netherlands
Publisher Elsevier
Language eng
Abstract This study links together theoretical models of strategic alliances with an empirical examination of stock returns on the announcement of strategic alliances. Using a sample of 123 strategic alliance announcements, the results find strong support for the hypothesis that strategic alliance announcements generate significant positive abnormal returns on the announcement day. Although strategic alliances are more prevalent in the higher technology industries, the source of the abnormal stock returns is a subsample of firms with the lowest market to book values. This is found to be supportive of the hypothesis that the announcement of a strategic alliance is additional information for firms with low growth. There is no empirical support for the knowledge, flexibility and the hubris hypotheses.
Keyword Firm value
Strategic alliance
Q-Index Code C1
Q-Index Status Provisional Code
Institutional Status Non-UQ

Document type: Journal Article
Sub-type: Article (original research)
Collection: UQ Business School Publications
Version Filter Type
Citation counts: Scopus Citation Count Cited 8 times in Scopus Article | Citations
Google Scholar Search Google Scholar
Created: Tue, 19 Mar 2013, 13:03:40 EST by Karen Morgan on behalf of UQ Business School