|Speaker: Brian Silverman|
|University of Toronto|
|Topic: Arms Race or Détente? How Inter-firm Alliance Announcements Change the Stock Market Valuation of Rivals|
|Date/Place/Time: Friday, December 12, 2008 1:30pm - 3:00pm
UCLA Anderson School, Cornell Hall D301
Most prior event studies find that the announcement of a new alliance is accompanied by a positive stock market response for the partners. This result has usually been interpreted as evidence for the prevailing view that alliances are effective vehicles for partners to acquire or access new skills and thus become stronger competitors. However, partners should also earn positive abnormal returns if alliances are used to shape competitive interactions, attenuating competitive intensity industry-wide.
|Link to paper (if available): Click here for paper|