Evidence on foreign direct investment in the United States.
Evidence from foreign direct investment through mergers in the U.S. show overall sample returns to target shareholders that are consistent with prior studies on domestic mergers. However, the returns to stockholders on non-U.K. bidders are significantly positive, which is different from results reported in prior studies. The returns to stockholders of U.K. bidders are significantly negative, which may be attributed to overbidding induced by U.K. tax laws allowing the write-off merger goodwill against reserves rather than against future earning.
Taylor & Francis
Chhachhi, I., Mathur, I., Rangan, N., & Sundaram, S. (1993). Evidence on foreign direct investment in the United States. In M.E. Kreinin (Ed.) International Commercial Policy: Issues for the 1990’s. (pp: 203-210). Washington, DC: Taylor & Francis.
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