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Corporate restructuring now constitutes an important component of modern business enterprises to create new synergies to face the competitive environment and changed market conditions. This chapter aims at examining the short-run performance of Indian acquiring firms involved in cross-border acquisitions, a prevalent practice of corporate restructuring. Event study methodology has been employed to assess the magnitude of value creation or destruction of the acquiring companies. The results indicate that Indian firms experience statistically significant positive abnormal returns on the day of the acquisition announcement. Moreover, cumulative average abnormal return (CAAR) comes out to be positive and significant in all multi-day event windows observed. This work is a modest attempt to add to the existing literature on cross-border acquisitions by examining the short-run performance of acquiring firms from an emerging economy.
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- Corporate Strategies: Evidence from Indian Cross-Border Acquisitions
P. K. Jain
- Springer Singapore
- Chapter 12
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