Market response to internationalization strategies: Evidence from Indian cross-border acquisitions

The paper provides evidence that shareholders of acquirer Indian corporations engaging in cross-border transactions experience a statistically significant positive average abnormal return on the announcement day as well as cumulative average abnormal returns over multi-day event windows. The gains are significantly positive and higher for the acquisitions of targets in developed markets. The regression analysis in the paper highlights that cross-border acquisitions of high tech sector target firms in developed markets generate better wealth. Further, relatively larger acquisitions create higher gains.