Volume : 3, Issue : 5, May - 2014

International Expansion Activities of Indian Multinationals: An Analysis of Market Reaction to InternationalMergers and Acquisitions

Dr. Aysun Ficici, Dr. Bulent Aybar

Abstract :

This study investigates the Internationalization strategies of Indian Multinationals. Hence, it scrutinizes the value implications of Indian Multinationals (IMs)). This study examines 763 mergers and acquisitions (M&A) announcement of 93IMs during the sample period of 2000–2012. When value creation is considered, the paper explores the effects of cross–border expansion patterns on firm value creation. Then, it examines market reaction to the announcements of cross–border expansion patterns. Finally, it evaluates firm performance in relation to the cross–border expansion activities. This study finds that most IMs earn positive abnormal returns during the event windows defined in this study. Hence, it is generally evident that there is value creation in international expansion activities of IMs