Article
Value Creation through Cross-Border Mergers and Acquisitions: Evidence from Selected Indian Companies
Cross-border mergers and acquisitions (M&As) have become one of the key options for Indian firms to expand abroad, gain access to technology and markets. The purpose of this research paper is to investigate the evidence of value creation in cross-border M&As by the Indian firms, both in the short-term and in the long-term in terms of shareholder value. After an exhaustive literature search of empirical studies of the period 2000-2026, the paper is able to synthesize the results of various methods of measurement such as event studies and accounting based performance measures. The evidence is mixed: some studies show that the cross-border acquisitions by Indian firms generate substantial shareholder value, especially in technology-intensive industries and acquisitions in the developed markets, while others studies failed to report any statistically significant value creation. Some factors affecting the value creation are: cultural distance, size of the deal, the nature of the target industry and the acquirer's strategic goals. Pharmaceuticals and information technology are clear examples of sectors where the cross-border M&As have helped to expand R&D capabilities and to gain market share globally. The paper suggests that value creation by cross-border M&As of Indian firms depends on the deal-specific factors and strategic orientation of the deal and not automatically and has implications for managers and policymakers.