TY - JOUR
T1 - The motives and performance of cross-border acquirers from emerging economies
T2 - comparison between Chinese and Indian firms
AU - Nicholson, Rekha Rao
AU - Salaber, Julie
PY - 2013/12
Y1 - 2013/12
N2 - During the recent decade, the world has witnessed the rapid growth of MNEs from emerging economies. Their increasing participation in cross-border mergers and acquisitions has raised great attention in the extant literature. This study evaluates the value creation from these cross-border transactions from two representative emerging countries, namely China and India, and determines factors that result in the different performance of these international acquisition activities. Cross-border acquisitions conducted by these countries' companies indeed lead to significant shareholder wealth creation. Furthermore, Indian shareholders are more likely to benefit from deals in small cultural distance countries, while Chinese investors gain from the cross-border expansion of manufacturing companies. Location also affects the performance of cross-border acquisitions, with acquisitions into developed countries generating higher returns to shareholders. Our sample consists of 203 Indian and 63 Chinese cross-border deals over the period 2000-2010 and our results hold after controlling for various deal-level and firm-level characteristics.
AB - During the recent decade, the world has witnessed the rapid growth of MNEs from emerging economies. Their increasing participation in cross-border mergers and acquisitions has raised great attention in the extant literature. This study evaluates the value creation from these cross-border transactions from two representative emerging countries, namely China and India, and determines factors that result in the different performance of these international acquisition activities. Cross-border acquisitions conducted by these countries' companies indeed lead to significant shareholder wealth creation. Furthermore, Indian shareholders are more likely to benefit from deals in small cultural distance countries, while Chinese investors gain from the cross-border expansion of manufacturing companies. Location also affects the performance of cross-border acquisitions, with acquisitions into developed countries generating higher returns to shareholders. Our sample consists of 203 Indian and 63 Chinese cross-border deals over the period 2000-2010 and our results hold after controlling for various deal-level and firm-level characteristics.
UR - http://www.scopus.com/inward/record.url?scp=84874940263&partnerID=8YFLogxK
UR - http://dx.doi.org/10.1016/j.ibusrev.2013.02.003
U2 - 10.1016/j.ibusrev.2013.02.003
DO - 10.1016/j.ibusrev.2013.02.003
M3 - Article
SN - 0969-5931
VL - 22
SP - 963
EP - 980
JO - International Business Review
JF - International Business Review
IS - 6
ER -