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With the presence of online, digital content and new services for manipulating and searching it, printing and publishing firms may experience technological uncertainty and risk and diminishing profitability. Mergers and acquisitions are approaches for dealing with the current technology and market changes that are underway in the printing and publishing industry. Using an event study methodology and a sample of 60 U.S. printing and publishing firms, this study investigates the value creation of acquiring information technology (IT) services firms. The study's findings reveal that printing and publishing firms experience significant increases in their market values as a result of acquiring IT services firms. In fact, non-newspaper firms realize the largest increases in market value. The study's findings should help academicians and practitioners understand the kinds of strategic acquisitions from which printing and publishing firms are most likely to benefit. ACCESS TO FULL TEXT

This study applies cointegration tests with time-dependent dummies to assess the impact of the Gulf War on the relationship between the forward exchange rate and the spot exchange rate using the British pound and the Japanese yen in terms of the US dollar. Cointegration of the spot and forward rate series cannot be supported for each of the exchange rates for a sample period around the Gulf War unless a five-week dummy is introduced starting in the Invasion week. The evidence is consistent with the existing literature in that it indirectly supports the long-run relationship between the spot and forward rates and confirms that short-run disruptions could occur and are consistent with the long-run relationship.