The motives and performance of cross-border acquirers from emerging economies: Comparison between Chinese and Indian firms

By R. Nicholson, Julie Salaber. 2013

205 citations recorded by the source corpus.

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.

Subfields: Accounting, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/c46c7c2ce0b7f816170fdbb6cf63e03c03be0124

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Accounting

1. En Xie
2. Xiaohui Liu
3. Ping Deng
4. Monica Yang
5. Yingqi Wei
6. Mike W. Peng
7. Nan Zheng
8. Lan Gao

In Strategy and Management

1. Xiaohui Liu
2. En Xie
3. Ping Deng
4. Monica Yang
5. Yingqi Wei
6. Nan Zheng
7. Mike W. Peng
8. Lan Gao

Citations in the corpus

• In search of strategic assets through cross-border merger and acquisitions: Evidence from Chinese multinational enterprises in developed economies (2016, background): “On the other hand, implicitly based on resource complementarity argument, Nicholson and Salaber (2013) maintain that, since Chinese firms have comparative advantages in manufacturing-orientated industries, their foreign acquisitions often aim at acquiring superior managerial and marketing skills to…”
• Do cross-border mergers and acquisitions increase short-term market performance? The case of Chinese firms (2017, background): “, 2007; North, 1990; Peng, Wang, & Jiang, 2008). North (1990) defines institutions as the ‘rule of the game’ in a society.”
• Mergers and acquisitions in and out of emerging economies (2015, background): “…Brouthers and Dikova (2010), Lanine and Vennet (2007), Meyer (2002), e Haan (2010), Uhlenbruck and De Castro (2000) anmu (2012), Sun et al. (2012), Nicholson and Salaber (2013) (2009), Bhagat et al. (2011), Chari et al. (2012, 2010), Chen (2011), Dailami et al. d Meyer (2011), Feito-Ruiz and…”
• The Institutional Influence on the Location Strategies of Multinational Enterprises from Emerging Economies: Evidence from China's Cross-border Mergers and Acquisitions (2016, unknown): “…investments (Duanmu, 2012; Kang & Jiang, 2012; Ramasamy et al., 2012), which, in fact, are likely to be determined by a separate set of factors (Bertrand & Madariaga, 2002; Mata & Portugal, 2000; Nicholson & Salaber, 2013; Nocke & Yeaple, 2008; Sun et al., 2012; Xia, Ma, Lu, & Liu, 2013).”
• Cross-border mergers and acquisitions by emerging market firms: A comparative investigation (2015, background): “Fundamentally, M&As need to match the resources provided by the target firm with the need of the acquiring firm, and ‘‘resource-rich’’ countries should be the focus of international acquisitions by EMFs (Haleblian et al., 2009; Nicholson & Salaber, 2013).”