Results of Cross-Border Mergers and Acquisitions by Multinational Corporations from Emerging Countries

摘要

This paper examines the economic effects of cross-border mergers and acquisitions by Polish firms. This issue is important because mergers and acquisitions generate the bulk of foreign direct investment flows. The novelty of the paper lies in focusing on the performance of acquirers instead of target firms. Acquiring enterprises' characteristics, especially profitability, market power, and the effectiveness of asset and equity utilization, are of particular interest. The time span of the analysis includes both periods preceding and following the transactions. The main conclusion drawn from this analysis is that firms acquiring a stake or total ownership in a foreign entity are better off in absolute terms, but their financial ratios worsen.