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Value implications of emerging market multinationals' cross-border expansion patterns : an analysis of M&As, JVs and SAs

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dc.contributor.advisor Bulent, Aybar Ficici, Aysun 2011-04-11T17:24:17Z 2011-04-11T17:24:17Z 2005
dc.description.abstract The objective of this study is to examine the value implications of cross-border expansion patterns of Emerging Market Multinationals (EMMs) and to observe market reaction to these patterns. It primarily focuses on mergers and acquisition (M&A), joint venture (JV) strategic alliance (SA) and announcements that took place during the period of 1991-2003. EMMs considered in this study are listed in UNCTAD's world investment report (2002), as the top 50 non-financial Transnational Corporations (TNCs) from developing economies and the largest 25 non-financial TNCs based in Central and Eastern Europe. This study employs event study and examines a total of 982 international expansion activities entailing 436 (M&As), 387 (JVs) and 159 (SAs) performed by 66 EMMs. The results indicate that market reaction to M&As is generally negative. Hence, EMMs that expand through M&As create little or no value. Similar results are evident for the JVs. SAs seem to generate more positive abnormal returns, but not statistically significant. While Asian and Latin American EMMs' expansions create value for shareholders, Eastern European EMMs' expansions are value destructive. A negative association between size of the acquisition and abnormal returns is illustrated suggesting value destructive impact of larger acquisitions. Acquisitions of SOEs are also value destructive. International experience and familiarity with the target market proved to be insignificant. Good governance is positively associated with cumulative abnormal returns. Diversified EMMs' cross-border acquisitions tend to create value for shareholders; however, hi-tech EMMs' cross-border acquisitions are value destructive. Some target country characteristics have a significant impact on acquiring firms' value creation. While more developed institutional infrastructure and overall level of economic development have positive impact on abnormal returns, geographic and cultural proximity proved to be insignificant. Cross-sectional and logistic regression analyses also support these results. Yet, the impact of all three expansion patterns on the performance of EMMs is positive. The improvement in performance is evident in all three years after the announcement. The performance in the third year surpasses the first two years. It is also indicative from the result that as EMM performance improves with time, multinationality measure decreases - stating a negative relationship between performance and multinationality. (Author abstract) en_US
dc.format.extent 12449509 bytes en_US
dc.format.extent 11892319 bytes en_US
dc.language.iso en_US en_US
dc.publisher Southern New Hampshire University en_US
dc.relation.requires Adobe Acrobat Reader en_US
dc.rights Author retains all ownership rights. Further reproduction in violation of copyright is prohibited en_US
dc.source Original format: Bound dissertation, Shapiro Library, Southern New Hampshire University en_US
dc.subject.lcsh Southern New Hampshire University -- Theses (International Business) en_US
dc.subject.other multinational corporation expansion en_US
dc.subject.other emerging markets en_US
dc.subject.other cross-border expansion en_US
dc.subject.other valuation en_US
dc.title Value implications of emerging market multinationals' cross-border expansion patterns : an analysis of M&As, JVs and SAs en_US
dc.title.alternative Value implications of emerging market multinationals' cross-border expansion patterns : an analysis of mergers and acquisitions, joint ventures, and strategic alliances en_US
dc.type Dissertation en_US
dc.contributor.committeeMember Samii, Massood
dc.contributor.committeeMember Nugent, Nicholas
dc.contributor.committeeMember Aliouche, El-Hachemi
dc.description.bibliographicCitation Ficici, A. (2005). Value Implications Of Emerging Market Multinationals' Cross-Border Expansion Patterns: An Analysis Of M&As, JVs And SAs. Retrieved from en_US Doctor of Business Administration (D.B.A.) en_US
dc.description.program International Business en_US School of Business en_US
dc.digSpecs Creation hardware: Epson Expression 10000XL Color Flatbed Scanner. Creation software: ABBYY FineReader Professional 9.0; Adobe Acrobat Professional 9.3. PDF/A-1b en_US
dc.format.mediaType application/pdf en_US
dc.rightsHolder Ficici, Aysun

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