Acquisitions of artificial intelligence companies. What are the effects for the acquiring firms’ stock price?
In a sample of acquirer companies from USA, which are dominant in the field of artificial intelligence, I analyze the returns after M&A activity. I find that the cumulative abnormal returns are higher for the targets that are related to artificial intelligence. Consistent with previous results, I also find that returns tend to be higher if the acquisition is not domestic, implying that returns of acquisitions of domestic companies not related to artificial intelligence are the lowest.
Faculteit der Managementwetenschappen