FDI from emerging to advanced countries: some insights on the acquisition strategies and on the performance of target firms

Author/s Peter J. Buckley, Stefano Elia, Mario Kafouros
Publishing Year 2011 Issue 2011/1 Language English
Pages 17 P. 181-197 File size 411 KB
DOI 10.3280/POLI2011-011007
DOI is like a bar code for intellectual property: to have more infomation click here

Below, you can see the article first page

If you want to buy this article in PDF format, you can do it, following the instructions to buy download credits

Article preview

FrancoAngeli is member of Publishers International Linking Association, Inc (PILA), a not-for-profit association which run the CrossRef service enabling links to and from online scholarly content.

The paper deals with acquisitions from emerging to advanced countries and the performances of the target firms. We have used descriptive statistics to investigate the strategies and the impact of the entry of emerging multinational companies (EMNCs) from Brazil, Russia, India and China (BRIC) on the performance of firms acquired in Europe, North America and Japan between 2000 and 2007. The results show that EMNCs do not always acquire firms with a high pre acquisition performance and that they do not significantly increase the post acquisition profitability of the target firms. Nevertheless, EMNCs contribute to increase target firms’ productivity and sales and to slow down their loss of jobs. We also show the importance of the acquisition experience of the acquiring firms. Experienced EMNCs not only acquire firms with a higher pre acquisition performance, but also contribute to increase more significantly the productivity and sales of the target firms. Ultimately, we highlight the differences in the sizes and the technology intensity of the target firms acquired by experienced and inexperienced EMNCs to provide further insights about the strategies and the effects of acquisitions from emerging to advanced countries.

Keywords: Mergers and acquisitions, emerging multinational companies (EMNCs), performances of target firms, previous acquisition experience

Jel codes: F23, L25, G3, P47

  • Emerging markets research: Trends, issues and future directions Colm Kearney, in Emerging Markets Review /2012 pp.159
    DOI: 10.1016/j.ememar.2012.01.003
  • The dragon and the elephant on the way to Italy Valeria Gattai, in ECONOMIA E POLITICA INDUSTRIALE 4/2014 pp.63
    DOI: 10.3280/POLI2013-004003
  • Internalisation Theory and Outward Direct Investment by Emerging Market Multinationals Peter J. Buckley, in Management International Review /2018 pp.195
    DOI: 10.1007/s11575-017-0320-4
  • Multinational enterprises from emerging economies: what theories suggest, what evidence shows. A literature review Alessia Amighini, Claudio Cozza, Elisa Giuliani, Roberta Rabellotti, Vittoria Giada Scalera, in Economia e Politica Industriale /2015 pp.343
    DOI: 10.1007/s40812-015-0011-8
  • A retrospective and agenda for future research on Chinese outward foreign direct investment Peter J Buckley, L Jeremy Clegg, Hinrich Voss, Adam R Cross, Xin Liu, Ping Zheng, in Journal of International Business Studies /2018 pp.4
    DOI: 10.1057/s41267-017-0129-1
  • Outbound Foreign Direct Investment from China and India Khanindra Ch. Das, Nilanjan Banik, in China Report /2015 pp.204
    DOI: 10.1177/0009445515587370

Peter J. Buckley, Stefano Elia, Mario Kafouros, FDI from emerging to advanced countries: some insights on the acquisition strategies and on the performance of target firms in "ECONOMIA E POLITICA INDUSTRIALE " 1/2011, pp 181-197, DOI: 10.3280/POLI2011-011007