The intra-industry effects of the acquisition of Dow Jones

Abstract

We examine the intra-industry effects associated with the acquisition of Dow Jones and Company by News Corporation. We test the significance of the market's reaction to news releases throughout 2007 using event study methods. We find evidence of a direct relation between the stock price reaction of Dow Jones and the stock price reaction of its competitors, indicating that the market viewed the acquisition as beneficial to Dow Jones's industry rivals.

Notes

¹ We also use the (−1, 0) and (−1, +1) event windows, with qualitatively identical results.