Changing Direction: Cross Border Acquisitions by Emerging Market Firms

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

Date Written: October 4, 2011


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: or

Lucy Chernykh

Clemson University ( email )

School of Accountancy and Finance
Clemson, SC 29634
United States

Antonio J. Macias (Contact Author)

Baylor University ( email )

Waco, TX 76798
United States

No contact information is available for Ivonne A. Liebenberg

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