The Eads Take-Off: An Investigation Through Stock Markets' Reactions

34 Pages Posted: 9 Mar 2004

See all articles by Nihat Aktas

Nihat Aktas

WHU - Otto Beisheim School of Management

Eric de Bodt

NHH

Laurent Liagre

University of Valenciennes

Date Written: November 26, 2003

Abstract

This paper focuses on the restructuring of the European aerospace and defence industry: EADS, owning 80% of Airbus, the major global civil aircraft manufacturer, ahead of Boeing in new aircraft orders. This process (initiated by European governments) has succeeded after many developments, involving state-owned firms, public and private companies. Part of this process can be comparable to privatisation, implying the greatly-documented impact of government ownership. Indeed, the question we try to answer is the following: did the European national authorities give birth to a credible private competitor in the aerospace sector? Our results show that the financial market has anticipated the birth of a credible competitor in this oligopolistic sector.

Keywords: Mergers and acquisition, state ownership, event studies

JEL Classification: G14, G18, G34

Suggested Citation

Aktas, Nihat and de Bodt, Eric and Liagre, Laurent, The Eads Take-Off: An Investigation Through Stock Markets' Reactions (November 26, 2003). Available at SSRN: https://ssrn.com/abstract=473884 or http://dx.doi.org/10.2139/ssrn.473884

Nihat Aktas (Contact Author)

WHU - Otto Beisheim School of Management ( email )

Burgplatz 2
Vallendar, 56179
Germany

Eric De Bodt

NHH ( email )

Helleveien 30
Bergen, NO-5045
Norway

Laurent Liagre

University of Valenciennes ( email )

et du Hainaut Cambresis
Le Mont Houy
59313 Valenciennes Cedex 9
France

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