Abstract
The global business organizations are virtually bound to possess strategic flexibility to confront the prevalent economic settings characterized by high volatility and fierce competition. Viewed from this perspective, cross-border acquisitions have become a critical constituent of expansion strategies for corporates, especially in emerging economies. This chapter proposes to evaluate the behavior of capital market around the announcement of international takeovers by firms from emerging economies. To meet these objectives, 110 overseas mergers undertaken by Indian companies over the period from 2012 to 2015 constitute the sample of the study. It has been observed that bidders, on an average, earn positive and statistically significant abnormal returns of 0.49% on the event day. Also, cumulative average abnormal returns (CAAR) examined over alternative period windows indicate significant value creation for Indian bidders. Moreover, the gains are more pronounced when the acquired firm is based in developed markets. This research work endeavors to enhance the understanding of cross-border acquisitions (CBAs) by enterprises from emerging markets (like India).
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Jain, S., Kashiramka, S., Jain, P.K. (2020). Strategic Flexibility Through Cross-Border Acquisitions: Market Response in Indian Context. In: Suri, P., Yadav, R. (eds) Transforming Organizations Through Flexible Systems Management. Flexible Systems Management. Springer, Singapore. https://doi.org/10.1007/978-981-13-9640-3_2
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