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Changing Direction: Cross Border Acquisitions by Emerging Market Firms

40 Pages Posted: 23 Jan 2010 Last revised: 11 Oct 2011

Lucy Chernykh

Clemson University

Ivonne A. Liebenberg

University of Mississippi - School of Business Administration

Antonio J. Macias

Baylor University

Date Written: October 4, 2011

Abstract

We examine the patterns of acquisitions by emerging market firms in emerging and developed markets. We show that emerging market firms are becoming increasingly active in targeting companies in developed countries since 1990. The two dominant patterns of emerging market firm acquisitions are mega deals that involve targets from developed markets and serial acquisitions of relatively small targets in emerging markets. We also detect a sharp increase in the average size of acquisitions by emerging market acquirers. Emerging market acquirers experience significant positive announcement returns when the target is from a developed market.

Keywords: Acquisitions, Cross-Border, Emerging markets, Developed Markets

JEL Classification: G34, F23

Suggested Citation

Chernykh, Lucy and Liebenberg, Ivonne A. and Macias, Antonio J., Changing Direction: Cross Border Acquisitions by Emerging Market Firms (October 4, 2011). Available at SSRN: https://ssrn.com/abstract=1540260 or http://dx.doi.org/10.2139/ssrn.1540260

Lucy Chernykh

Clemson University ( email )

School of Accountancy and Finance
Clemson, SC 29634
United States

Ivonne A. Liebenberg

University of Mississippi - School of Business Administration ( email )

253 Holman
Oxford, MS 38677
United States

Antonio J. Macias (Contact Author)

Baylor University ( email )

Waco, TX 76798
United States

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