Shareholders' gains from corporate expansion to the republics of the former Soviet Union

Recent political, economic, and social changes in the Republics of the Form er Soviet Union (RFSUs) have created opportunities for US firms to expand t heir presence there. This study provides evidence on how shareholder wealth is affected by expansion into the RFSUs. The results show that tangibility of assets influences excess returns. Finally, the results indicate that hi gher excess returns are realized when managerial interests are aligned with those of shareholders.