Cross-Border Mergers and Acquisitions between Industrialized and Developing Countries: US and Indian Merger Activity

In this paper we study the cross border mergers and acquisition between the US and Indian firms. Our empirical work suggests that US firms realize significant losses on the announcement of acquisitions of Indian targets while Indian targets realize significant gains on the announcement mergers with US acquirers. Publicly-traded Indian firms realize significant returns on their announcement of acquisitions of publicly-traded US firms but realize significant positive returns on announcement of acquisitions of privately-held US firms and subsidiary firm targets. Publicly-traded US targets realize insignificant gains when US acquired by Indian firms