Author Type

Graduate Student

Date of Award

1992

Document Type

Thesis

Publication Status

Version of Record

Submission Date

October 2026

Thesis/Dissertation Advisor [Chair]

Madura, Jeff

Abstract

This study empirically investigates direct foreign investments, acquisitions and partial acquisitions with a U.S. firm, from 1980 through 1989. The primary purpose of this study is two-fold: (1) establish the overall effect of direct foreign investments on shareholder wealth surrounding the announcement (the short-term share price reaction) and over a three-year period after the announcement (the long-term share price reaction) and (2) form a greater understanding of the variables influencing the shareholder wealth effect of direct foreign investments. The overall short-term share price reaction is negative but insignificant for U.S firms acquiring foreign firms, positive and significant for U.S. firms partially acquiring foreign firms, and positive and significant for U.S. targets partially acquired by foreign firms. The overall long-term share price reaction is negative and significant for each of the previous three group of U.S. firms, yet positive and significant for foreign targets partially acquired by U.S. firms and negative but insignificant for foreign firms partially acquiring U.S. firms. The variables influencing each group of U.S. firms are a firm's name recognition, the exchange rate, investment in a related industry, investment in a developed country, and the presence of a previous international expansion.

Extent

372 p.

Comments

Thesis (Ph.D.)--Florida Atlantic University, 1992.|College of Business|Thesis (Ph.D.)--Florida Atlantic University, 1992.

Identifier

FADT12315

Format

pdf

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