Essays on acquisition investments from emerging to developed markets

The literature has little to say about M&A activities in emerging markets, especially when firms from these countries acquire targets in developed economies, yet this growing tendency has manifested itself clearly in the global markets for corporate control over the last two decades. Unsurprisin...

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Main Author: Ho, Hai Hong
Format: Thesis (University of Nottingham only)
Language:English
Published: 2013
Online Access:https://eprints.nottingham.ac.uk/13351/
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author Ho, Hai Hong
author_facet Ho, Hai Hong
author_sort Ho, Hai Hong
building Nottingham Research Data Repository
collection Online Access
description The literature has little to say about M&A activities in emerging markets, especially when firms from these countries acquire targets in developed economies, yet this growing tendency has manifested itself clearly in the global markets for corporate control over the last two decades. Unsurprisingly, our understanding of what underpins their decisions to venture into more advanced economies or whether they are able to create or destroy value is still limited. Using recent data on the emerging markets, we find emerging-markets acquirers tend to acquire small firms with a relatively low stock of intangible assets in developed economies. This finding is in accordance with the strategic market entry hypothesis, which posits that acquirers aim to learn from more advanced markets through market entry and gradually consolidate their global competitive position in the long run. Nonetheless, no matter what their strategy really is, we find that it is unlikely to materialize in the long run, or at least in the course of three, four or five years. Expected synergies are likely to be overwhelmed by the strong nature of the value destruction of cross-border acquisitions and evident agency and hubris problems.
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spelling nottingham-133512025-02-28T11:24:38Z https://eprints.nottingham.ac.uk/13351/ Essays on acquisition investments from emerging to developed markets Ho, Hai Hong The literature has little to say about M&A activities in emerging markets, especially when firms from these countries acquire targets in developed economies, yet this growing tendency has manifested itself clearly in the global markets for corporate control over the last two decades. Unsurprisingly, our understanding of what underpins their decisions to venture into more advanced economies or whether they are able to create or destroy value is still limited. Using recent data on the emerging markets, we find emerging-markets acquirers tend to acquire small firms with a relatively low stock of intangible assets in developed economies. This finding is in accordance with the strategic market entry hypothesis, which posits that acquirers aim to learn from more advanced markets through market entry and gradually consolidate their global competitive position in the long run. Nonetheless, no matter what their strategy really is, we find that it is unlikely to materialize in the long run, or at least in the course of three, four or five years. Expected synergies are likely to be overwhelmed by the strong nature of the value destruction of cross-border acquisitions and evident agency and hubris problems. 2013-07-18 Thesis (University of Nottingham only) NonPeerReviewed application/pdf en arr https://eprints.nottingham.ac.uk/13351/1/PhD_thesis-HaiHO_final_hard_bound.pdf Ho, Hai Hong (2013) Essays on acquisition investments from emerging to developed markets. PhD thesis, University of Nottingham.
spellingShingle Ho, Hai Hong
Essays on acquisition investments from emerging to developed markets
title Essays on acquisition investments from emerging to developed markets
title_full Essays on acquisition investments from emerging to developed markets
title_fullStr Essays on acquisition investments from emerging to developed markets
title_full_unstemmed Essays on acquisition investments from emerging to developed markets
title_short Essays on acquisition investments from emerging to developed markets
title_sort essays on acquisition investments from emerging to developed markets
url https://eprints.nottingham.ac.uk/13351/