Title: Cross-border merger impact on wealth of acquirers: evidence from emerging nation

Authors: Sweta Agarwal; Anubhav Jain

Addresses: Lal Bahadur Shastri Institute of Management, New Delhi, 11/07, Sector-11, Dwarka, New Delhi, 110075, India ' Ernst and Young, LLP, 2nd, 3rd floor – Tower A and 4th floor – Tower B, DLF Cyber Park Phase ll, Udyog Vihar, Sector 20, Gurugram, Haryana, India

Abstract: The paper tries to assess the impact of cross-border mergers and acquisitions announcements on the Indian acquiring firm's shareholder wealth. A total of 110 CBMA deals announced by Indian acquirers between 2013-2018 comprises the dataset. Value effects were determined using event study methodology. The study reveals positive abnormal returns on the announcement day consistent with other similar Indian studies. It also reports higher positive wealth effects in post-announcement windows compared to pre-announcement windows. The results highlight increasing informational efficiency in Indian stock markets and shrinkage of wealth-creating windows in CBMA deals for acquiring firm's shareholders.

Keywords: cross-border mergers and acquisitions; CBMA; abnormal returns; event study methodology; emerging economy.

DOI: 10.1504/AAJFA.2023.134696

Afro-Asian Journal of Finance and Accounting, 2023 Vol.13 No.6, pp.798 - 818

Received: 06 Dec 2020
Accepted: 12 Aug 2021
Published online: 06 Nov 2023 *

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