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Overseas Mergers and Acquisitions by Indian Enterprises: Patterns and Motivations

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Author Info
Pradhan, Jaya Prakash
Abraham, Vinoj

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Abstract

This paper examines the patterns and motivations behind the overseas M&As by Indian enterprises. It is found that a large majority of overseas M&As originated within services sector led by software industry and in overwhelming cases were directed towards developed countries of the world economy. The main motivations of Indian firm’s overseas acquisitions have been to access international market, firm-specific intangibles like technology and human skills, benefits from operational synergies, overcome constraints from limited home market growth, and survive in an increasingly competitive business environment. Further it has been found that overseas acquirers in the case of manufacturing sector tends to be large sized and research intensive, while they are older, large sized and export-oriented in the case of software sector.

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File URL: http://mpra.ub.uni-muenchen.de/17076/
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Publisher Info
Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 17076.

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Date of creation: 23 Jan 2004
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Publication status: Published in Indian Journal of Economics 33. LXXXV(2005): pp. 365-386
Handle: RePEc:pra:mprapa:17076

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Related research
Keywords: Indian firms; Overseas M&As;

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Find related papers by JEL classification:
L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure

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  1. Pradhan, Jaya Prakash & Singh, Neelam, 2008. "Outward FDI and Knowledge Flows: A Study of the Indian Automotive Sector," MPRA Paper 12332, University Library of Munich, Germany. [Downloadable!]
    Other versions:
  2. Pradhan, Jaya Prakash, 2005. "Outward Foreign Direct Investment from India: Recent Trends and Patterns," MPRA Paper 12358, University Library of Munich, Germany. [Downloadable!]
  3. Pradhan, Jaya Prakash, 2007. "Growth of Indian Multinationals in the World Economy: Implications for Development," MPRA Paper 12360, University Library of Munich, Germany. [Downloadable!]
  4. Pradhan, Jaya Prakash, 2007. "Trends and Patterns of Overseas Acquisitions by Indian Multinationals," MPRA Paper 12404, University Library of Munich, Germany. [Downloadable!]
  5. Pradhan, Jaya Prakash, 2007. "National Innovation System and the Emergence of Indian Information and Software Technology Multinationals," MPRA Paper 12359, University Library of Munich, Germany. [Downloadable!]
    Other versions:
  6. Pradhan, Jaya Prakash, 2008. "Indian Direct Investment in Developing Countries: Emerging Trends and Development Impacts," MPRA Paper 12323, University Library of Munich, Germany. [Downloadable!]
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