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The performance of cross-border acquirers from emerging economies

Author

Listed:
  • Xiaobai Ma
  • Yiying Zhu
  • Wenyuan Cai

Abstract

Purpose - – This paper aims to evaluate the value creation of cross-border acquisitions conducted by Chinese firms and determinants that result in the different performance. During the recent decades, the world has witnessed multinational enterprises (MNEs) from emerging economies undertaking aggressive cross-border mergers and acquisitions (M & As). This phenomenon raises great attention in the international business community, and also challenges the traditional understanding in the extant literature. Design/methodology/approach - – The authors examine 272 cross-border M & As associated with 48 target countries during the period 1996-2012. Findings - – Evidences show that cross-border expansions on average point to negative performance in the short term. The authors also find that prior cross-border M & A experiences, ownership structure of the acquirer (state-owned vs private) and acquirer size positively affect the performance of the acquiring firm. Originality/value - – In addition to contributing to cross-border M & A literature, the findings also provide useful guidance to outward foreign direct investment by firms from emerging economies.

Suggested Citation

  • Xiaobai Ma & Yiying Zhu & Wenyuan Cai, 2016. "The performance of cross-border acquirers from emerging economies," Nankai Business Review International, Emerald Group Publishing Limited, vol. 7(1), pages 21-38, March.
    • Handle: RePEc:eme:nbripp:v:7:y:2016:i:1:p:21-38
    DOI: 10.1108/NBRI-12-2014-0046
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    Citations

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    Cited by:

    1. Jain, Samta & Kashiramka, Smita & Jain, P.K., 2019. "Wealth effects on cross-border acquisition firms from emerging economies," Emerging Markets Review, Elsevier, vol. 40(C), pages 1-1.
    2. Samta Jain & Smita Kashiramka & P. K. Jain, 2018. "Impact of Organizational Learning and Absorptive Capacity on the Abnormal Returns of Acquirers: Evidence from Cross-Border Acquisitions by Indian Companies," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 19(4), pages 289-303, December.

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