Determinants of Cross Border Merger and Acquisition in Advanced Emerging Market Acquiring Firms

Cross border merger and acquisition (CBMA) deals worth over US$2 billion every year but failure rate is between 70 to 90 percent. Many researchers have tried to explain those abysmal statistics but the outcomes are equivocal. This research aims to examine the determinants of CBMA that affect the shareholder value creation of advanced emerging market acquiring firms. Event study and regression analysis are applied for the study period 2000-2011. The result shows six determinants have a positive relationship with the shareholder value creation and are statistically significant for the advanced emerging market scenario.