CROSS-BORDER MERGERS AND ACQUISITIONS AND SUPPLY CHAIN IMPACT: EVIDENCE FROM THE IT INDUSTRY

摘要

This study focuses on stock market reaction to the supply chain (the acquiring firm, its major suppliers and customers) in the event of cross-border mergers and acquisitions in the IT industry. The findings of this study show that market reaction is negative to the acquiring firm and its suppliers in the IT industry. It is also found that the negative market reaction is stronger to the suppliers than to the acquiring firm. In addition, the customers of the acquirer were found to have no significant cumulative abnormal return. The implication of this study is discussed at the end.