Evidence on foreign direct investment in the United States.

Authors

Indudeep Chhachhi
Ike Mathur
Nanda K. Rangan
Sridhar Sundaram, University of South Florida St. PetersburgFollow

SelectedWorks Author Profiles:

Sridhar Sundaram

Document Type

Article

Publication Date

1993

Abstract

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.

Publisher

Taylor & Francis

Recommended Citation

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.

Creative Commons License

This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License.