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  • 标题:Impact of Domestic and Cross-Border Acquisitions on Acquirer Shareholders’ Wealth: Empirical Evidence from Indian Corporate
  • 本地全文:下载
  • 作者:Neelam Rani ; Surendra Yadav ; P. Jain
  • 期刊名称:International Journal of Business and Management
  • 印刷版ISSN:1833-3850
  • 电子版ISSN:1833-8119
  • 出版年度:2014
  • 卷号:9
  • 期号:3
  • 页码:88
  • DOI:10.5539/ijbm.v9n3p88
  • 出版社:Canadian Center of Science and Education
  • 摘要:

    The present paper compares the impact of domestic acquisitions and cross-border acquisitions on Indianacquirer shareholders’ wealth during 2003-2008. A segregated analysis has also been conducted to measure theimpact of stake/control acquired, based on a sample of acquisitions of 268 domestic and 255 target firms acrossborder. Further, this paper also analyses the short-run performance of percentage of stake/control acquired inboth type of acquisitions. The stake/control acquired is divided into two categories: (i) complete acquisition and(ii) partial/majority control acquisition. Event study methodology has been conducted to analyse the share priceperformance of Indian acquirers in short-term. The findings reveal that cross-border as well as domesticacquisitions enhance shareholders’ wealth of the acquirer company on the announcement. The results indicatethat cross-border acquisitions generate higher returns than domestic acquisitions. Nonetheless, the segregatedanalysis makes it evident that the shareholders of acquiring firms of complete cross-border acquisitions earnhigher abnormal returns (significant at 5 per cent). The abnormal returns are higher (though statisticallyinsignificant) for partial/majority control domestic acquisitions.

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