The Effect of Cross-Border Mergers and Acquisitions on Shareholder Wealth:Evidence from Indian High-technology Industry

This paper examines the shareholder wealth effects of acquirers as well as targets involved in the Cross-Border Mergers &Acquisitions (CB M&As) by employing event study methodology. A sample of 53 outbound CB M&As and 37 inbound CB M&As occurred in the Indian high-technology industry during the period January 1, 2000 to March 31, 2016 has been used. We find that CB M&As do create wealth for the shareholders of acquirers and the target companies in the short-run. It is also observed that the target company shareholders’ wealth effect is significantly higher than the wealth effect of acquirer company shareholders.