Intra-industry Information signaling of Foreign Acquisitions
研究了外资收购中国上市公司时，其公告和终止如何向行业内竞争对手传递竞争压力或收购概率的信息，发现竞争对手对公告反应负面、对终止反应正面，支持竞争假说。
Foreign acquisition may transfer information about competition pressure or acquisition probability to the target's rivals in the industry.The paper empirically examines the information contents delivered by foreign acquisition,with the sample of 89 foreign acquisitions of Chinese listed companies.The authors find that target's rivals reacted negatively to foreign acquisition initial announcements and positively to termination announcements. The result suggests that foreign acquisitions in China signaled a change in the competitive balance in the acquired industries,consistent with competitive hypothesis.Further analysis of the long-term operating performance measures also shows that the acquired firms outperformed their industry counterparts in the post-acquisition period.