Acquiring control in emerging markets
Subtitle: evidence from the stock market
By: Anusha Chari, Paige P. Ouimet, Linda L. Tesar.
Contributors: Ouimet, Paige P.; Tesar, Linda L. 1961-; National Bureau of Economic Research.
Series: NBER working paper series ;; working paper 10872; Working paper series (National Bureau of Economic Research : Online) ;; working paper no. 10872.
Publisher: National Bureau of Economic Research
Published: 2004
Place of publication: Cambridge, MA
Language: eng
Format: Electronic resource
Subjects: International business enterprises.; Consolidation and merger of corporations.; Stocks.
Description: "When firms from developed markets acquire firms in emerging markets, market-capitalization-weighted monthly joint returns show a statistically significant increase of 1.8%.  Panel data estimations suggest that the value gains from cross-border M & A transactions stem from the transfer of majority control from emerging-market targets to developed market acquirers %u2013 joint returns range from 5.8% to 7.8% when majority control is acquired.  Announcement returns for acquirer and target firms estimate the distribution of gains and show a statistically significant increase of 2.4% and 6.9%, respectively.  The evidence suggests that the stock market anticipates significant value creation from cross-border transactions that involve emerging-market targets leading to substantial gains for shareholders of both acquirer and target firms"--National Bureau of Economic Research web site.
Notes: Includes bibliographical references.
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Also available in print.
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Mode of access: World Wide Web.