Purpose

The purpose of this paper is to examine the impact of cross-border acquisitions (CBAs) on the financial and operating performance of acquiring firms from emerging economies in the long-term; the acquiring firms have been segregated into frequent (multiple) and first-time (single) acquirers based on their prior cross-border experience. The intent is to identify if overseas activities bring over and above advantage to multiple acquirers in terms of enhanced financial synergies and reduced costs, motivating them to engage in sequential international transactions.

Design/methodology/approach

The paper analyses the impact of CBAs announced and completed during 2004–2013 by Indian companies listed on the NIFTY 500 index. The post-acquisition financial and operating performance of Indian cross-border acquirers has been compared with their pre-acquisition performance. The average performance over three-years immediately preceding the acquisition year constitutes the benchmark for the post-acquisition performance. The post-acquisition period includes a year of integration followed by three successive post-integration years. Therefore, in operational terms, the research period extends from 2001–2017. The long-term performance of frequent (multiple) and first-time (single) Indian acquirers has been investigated comprehensively using a set of 16 financial ratios. The performance has been assessed using the secondary data collected from financial statements of acquiring companies; the financial statements and the list of CBAs by Indian companies have been obtained from Thomson Reuter’s EIKON database.

Findings

The financial and operating performance of frequent as well as first-time acquirers have depicted a similarly deteriorating trend during the post-acquisition period. These findings indicate that the international expansion of Indian companies is not guided by synergy creation potential and may be pushed by the overconfidence or over-optimism and agency conflicts of managers. This, perhaps, indicates that firms are being imprudent in investing free cash flows available with them.

Originality/value

The study is the first of its kind. No study, to the best of the authors’ knowledge, has analysed the performance of acquiring firms by segregating them into frequent and first-time acquirers using accounting measures of performance. More so, an extensive analysis of the long-term financial and operating performance of acquiring companies is rare to come across in the extant literature.

中文翻译：

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频繁的并购者在跨境并购中表现优于大企业吗？印度公司研究

目的

本文的目的是从长期来看跨境并购（CBA）对并购公司的财务和经营绩效的影响；收购公司已根据其以往的跨境经验分为频繁（多个）和首次（单个）收购方。目的是确定海外活动是否在增强财务协同作用和降低成本方面为多个收购方带来了超越的优势，从而激发了他们进行顺序的国际交易。

设计/方法/方法

本文分析了在NIFTY 500指数中上市的印度公司在2004–2013年间宣布和完成的CBA的影响。将印度跨境收购方的收购后财务和经营绩效与其收购前的绩效进行了比较。紧接收购年份之前的三年中的平均绩效构成了收购后绩效的基准。购置后的期间包括集成年份，其后是连续的三个集成后年份。因此，从操作上讲，研究期从2001年至2017年。频繁（多次）和首次（单个）印度收购方的长期绩效已使用一组16个财务比率进行了全面调查。绩效是使用从并购公司财务报表中收集的辅助数据进行评估的；印度公司的财务报表和CBA清单已从Thomson Reuter的EIKON数据库中获得。

发现

频繁收购者和首次收购者的财务和经营业绩在收购后期间都呈现出类似的恶化趋势。这些发现表明，印度公司的国际扩张不受协同创造潜力的指导，可能是由于经理人的过度自信或过度乐观以及代理人冲突所推动。这也许表明，企业在投资可利用的自由现金流方面是不慎重的。

创意/价值

这项研究是同类研究中的第一篇。据作者所知，没有研究通过使用绩效会计指标将收购公司分为频繁的和首次收购的公司来分析收购公司的绩效。更重要的是，在现有文献中很少有对并购公司的长期财务和运营绩效进行广泛分析的。