Market response to internationalization strategies: Evidence from Indian cross-border acquisitions
The paper provides evidence that shareholders of acquirer Indian corporations engaging in cross-border transactions experience a statistically significant positive average abnormal return on the announcement day as well as cumulative average abnormal returns over multi-day event windows. The gains a...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Elsevier
2015-06-01
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| Series: | IIMB Management Review |
| Subjects: | |
| Online Access: | http://www.sciencedirect.com/science/article/pii/S0970389615000324 |
| Summary: | The paper provides evidence that shareholders of acquirer Indian corporations engaging in cross-border transactions experience a statistically significant positive average abnormal return on the announcement day as well as cumulative average abnormal returns over multi-day event windows. The gains are significantly positive and higher for the acquisitions of targets in developed markets. The regression analysis in the paper highlights that cross-border acquisitions of high tech sector target firms in developed markets generate better wealth. Further, relatively larger acquisitions create higher gains. |
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| ISSN: | 0970-3896 |