The Eads Take-Off: An Investigation Through Stock Markets' Reactions
34 Pages Posted: 9 Mar 2004
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: Suggested Citation
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