Faculty
Terrence Blackburne
Shirley E. Droschkey Associate Professor
Accounting

Terrence Blackburne

terrence.blackburne@oregonstate.edu

Faculty
Terrence Blackburne
Overview
Overview
Publications

Publications

Academic Journal
Accounting

“Information flows among rivals and corporate investment”

Using a novel pairwise measure of firms’ acquisition of rivals’ disclosures, we show that investment opportunities drive interfirm information flows. We find that these flows predict subsequent mergers and acquisitions as well as how and how much firms invest, relative to rivals. Moreover, firms’ use of rivals’ information often hinges on the similarities of their products. Our results suggest that rivals’ public information, far from being unusable, helps facilitate investment and product decisions, including acquisitions and product differentiation strategies. The findings also support a learning mechanism that could partly underlie the emerging literature on peer investment effects.
Details

760-779 pages 2020 Elsevier Terrence Blackburne Darren Bernard Jake Thornock View on: Google Scholar