A reexamination of value creation through strategic alliances

Uri Ben Zion, Koresh Galil, Mosi Rosenboim, Hadas Shabtay
2011 International Journal of Banking, Accounting and Finance  
This paper uses a sample of 335 firms participating in strategic alliances in order to re-examine the value creation through strategic alliances. We show that the immediate positive response of stock markets to new strategic alliances is followed by negative abnormal returns. Twenty days after announcements, cumulative positive abnormal return is only evident for the firms with the highest stock market's response to the announcement. We relate the positive abnormal returns reported in previous
more » ... ported in previous research to the presence of short-run over-reaction in stock markets and conclude in the market's ability to identify the more valuable alliances.
doi:10.1504/ijbaaf.2011.041452 fatcat:llpg2uh5tjdmtgr2fmmdnkiffm