In a Study of the Effect of International Acquisitions on the Stock

Multiple Choice

In a study of the effect of international acquisitions on the stock prices of U.S. firms. U.S. acquiring firms with information-based intangible assets experience a significantly positive stock price reaction upon foreign acquisition.

A) This is consistent with the finding that the market value of the firm is positively related to its multinationality because of the firm's intangible assets, such as R&D capabilities, with public good nature.
B) It is not the multinationality per se that contributes to the firm's value.
C) Their empirical findings support the (forward-) internalization theory of FDI.
D) All of the above