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

dc.contributor.advisorBulent, Aybar
dc.contributor.authorFicici, Aysun
dc.contributor.committeeMemberSamii, Massood
dc.contributor.committeeMemberNugent, Nicholas
dc.contributor.committeeMemberAliouche, El-Hachemi
dc.date.accessioned2011-04-11T17:24:17Z
dc.date.available2011-04-11T17:24:17Z
dc.date.issued2005
dc.description.abstractThe 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.description.bibliographicCitationFicici, A. (2005). Value Implications Of Emerging Market Multinationals' Cross-Border Expansion Patterns: An Analysis Of M&As, JVs And SAs. Retrieved from http://academicarchive.snhu.eduen_US
dc.description.degreeDoctor of Business Administration (D.B.A.)en_US
dc.description.programInternational Businessen_US
dc.description.schoolSchool of Businessen_US
dc.digSpecsCreation hardware: Epson Expression 10000XL Color Flatbed Scanner. Creation software: ABBYY FineReader Professional 9.0; Adobe Acrobat Professional 9.3. PDF/A-1ben_US
dc.format.extent12449509 bytesen_US
dc.format.extent11892319 bytesen_US
dc.format.mediaTypeapplication/pdfen_US
dc.identifier.urihttps://hdl.handle.net/10474/1803
dc.language.isoen_USen_US
dc.publisherSouthern New Hampshire Universityen_US
dc.relation.requiresAdobe Acrobat Readeren_US
dc.rightsAuthor retains all ownership rights. Further reproduction in violation of copyright is prohibiteden_US
dc.rightsHolderFicici, Aysun
dc.sourceOriginal format: Bound dissertation, Shapiro Library, Southern New Hampshire Universityen_US
dc.subject.lcshSouthern New Hampshire University -- Theses (International Business)en_US
dc.subject.othermultinational corporation expansionen_US
dc.subject.otheremerging marketsen_US
dc.subject.othercross-border expansionen_US
dc.subject.othervaluationen_US
dc.titleValue implications of emerging market multinationals' cross-border expansion patterns : an analysis of M&As, JVs and SAsen_US
dc.title.alternativeValue implications of emerging market multinationals' cross-border expansion patterns : an analysis of mergers and acquisitions, joint ventures, and strategic alliancesen_US
dc.typeDissertationen_US

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