Investors’ Reactions to Alliance-engendered Acquisition Ambiguity: Evidence from US Technology Deals

Panos Desyllas, Martin Goossen, Corey C. Phelps

Research output: Contribution to journalArticlepeer-review

12 Downloads (Pure)


We study how, when target firms are engaged in strategic alliances, the ambiguity surrounding an acquisition's anticipated synergies influences investors’ reactions to announcements of acquisitions. Drawing on behavioural finance research and the resource redeployment literature, we predict that investors’ limited access to the information encoded in the target firms’ alliances and the uncertainty around the re-deployability of their embedded resources generate a negative relationship between the number of target alliances and investors’ reactions. We also hypothesize that this negative effect is exacerbated when the alliances involve foreign alliance partners but is attenuated when acquirers are experienced in acquiring targets with alliances. Analysis of a large sample of US technology acquisitions supports all our hypotheses. We contribute to management research by offering a viable explanation of investors’ reactions to the announcement of major corporate events, such as acquisitions, whose structural characteristics deny investors material information about these events’ potential to create value.

Original languageEnglish
JournalJournal of Management Studies
Early online date19 Jun 2023
Publication statusPublished - 19 Jun 2023


  • ambiguity
  • investor reaction
  • mergers and acquisitions
  • resource redeployment
  • strategic alliances

ASJC Scopus subject areas

  • Management of Technology and Innovation
  • Business and International Management
  • Strategy and Management


Dive into the research topics of 'Investors’ Reactions to Alliance-engendered Acquisition Ambiguity: Evidence from US Technology Deals'. Together they form a unique fingerprint.

Cite this