Performance and value creation in international acquisitions: an empirical analysis of foreign acquisitions by Indian firms

Abstract

This study examines the announcement effect and the post-acquisition long-term performance of 96 Indian international acquisitions of U.S. firms made in the period 1999-2005. We find that while the international acquisition announcements by Indian firms create significant short-term shareholders’ wealth, in the long-run international acquisitions have a negative impact on the shareholders’ wealth.