Do international acquisitions by emerging-economy firms create shareholder value? The case of Indian firms

dc.contributor.authorGubbi, Sathyajit
dc.contributor.authorAulakh, Preet S.
dc.contributor.authorRay, Sougata
dc.contributor.authorSarkar, Bidyut
dc.contributor.authorChittoor, Raveendra
dc.date.accessioned2023-04-30T13:54:30Z
dc.date.available2023-04-30T13:54:30Z
dc.date.copyright2010en_US
dc.date.issued2010
dc.description.abstractWhile overseas acquisitions by emerging economy firms are getting increased attention from the business press, our understanding of whether, and why, this inorganic mode of international expansion creates value to acquirer firms is limited. We argue that international acquisitions constitute an important strategic lever of value creation for emerging economy firms as they facilitate internalization of tangible and intangible resources that are both difficult to trade through market transactions and take time to develop internally. Furthermore, the magnitude of positive returns will be higher when the target firms are located in countries offering advanced economic and institutional environments that carry the promise of higher quality of resources and therefore stronger complementarity to the existing capabilities of emerging economy firms. An event study of 425 cross-border acquisitions by Indian firms during 2000- 2007 support our predictions.en_US
dc.description.reviewstatusRevieweden_US
dc.description.scholarlevelFacultyen_US
dc.description.sponsorshipSocial Science and Humanities Research Council of Canada (Grant no. 410-2005-2186)en_US
dc.identifier.citationGubbi, S., et al. (2010). Do international acquisitions by emerging-economy firms create shareholder value? The case of Indian firms. Journal of International Business Studies, 41(3), 397–418. https://doi.org/10.1057/jibs.2009.47.en_US
dc.identifier.urihttps://doi.org/10.1057/jibs.2009.47
dc.identifier.urihttp://hdl.handle.net/1828/15073
dc.language.isoenen_US
dc.publisherJournal of International Business Studiesen_US
dc.subject.departmentPeter B. Gustavson School of Business
dc.titleDo international acquisitions by emerging-economy firms create shareholder value? The case of Indian firmsen_US
dc.typePostprinten_US

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