{
  "id": 9503833,
  "title": "The impact of acquisitions on stock returns",
  "url": "https://urgent.news/2026/09/24/the-impact-of-acquisitions-on-stock-returns",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-24T06:01:13.000Z",
  "source": {
    "name": "Klement on Investing",
    "slug": "klement-on-investing",
    "url": "https://klementoninvesting.substack.com/p/the-impact-of-acquisitions-on-stock"
  },
  "original_language": "en",
  "account": "Acquisitions can have a negative impact on stock returns, according to research by José Fillat and Stefania Garetto. Their study finds that businesses with better management tend to expand internationally. However, this international expansion often leads to lower shareholder returns. US companies that remain domestically focused or do not make acquisitions tend to have higher returns than those that acquire other companies. The paper suggests that companies with higher-quality management may grow faster and be more profitable, allowing them to accumulate cash for acquisitions. Over time, these acquisitions can drain shareholder value. Additionally, US companies primarily target UK businesses as acquisition opportunities, potentially contributing to the declining number of listed companies in the UK.",
  "summary": "Sometimes, I come across an academic study that was supposed to investigate something else entirely, yet the message I take away is something different altogether.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}