Seeking strategic assets within cross-border acquisition waves: a study of Indian firms

Abstract

There is evidence to suggest that cross-border acquisitions by emerging market firms exhibit a wave-like pattern. In this paper, we examine the timing of cross-border acquisitions with a strategic asset-seeking motive within cross-border acquisition waves. Our findings suggest that emerging market firms are more likely to pursue acquisitions with a strategic asset-seeking motive during the early and decline phases of the wave, and lower during the wave peak. Further, we show that business group affiliation and foreign institutional shareholding moderate the relationship, thereby strengthening the propensity to pursue strategic asset-seeking acquisitions during the early phase of the wave. Our study based on a sample of 312 cross-border acquisitions conducted by Indian firms, provides support for our hypotheses.