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Performance of cross-border acquirers from India and China: its sustainability in the long-run?

Samta Jain (FORE School of Management, New Delhi, India)
Smita Kashiramka (Department of Management Studies, Indian Institute of Technology Delhi, New Delhi, India)
P.K. Jain (Department of Management Studies, Indian Institute of Technology Delhi, New Delhi, India)

Review of International Business and Strategy

ISSN: 2059-6014

Article publication date: 29 June 2023

Issue publication date: 2 January 2024




Emerging market multinational companies have been vigorous in pursuing inorganic growth through cross-border acquisitions (CBAs). The fundamental studies till now have portrayed that rapid internationalization through CBAs tends to create value for these emerging market firms (EMFs) in the short term. However, there is an ambiguity about whether these firms endure better performance in the long term. The purpose of this study is to assess the long-term (ex-post) financial and operating performance of EMFs involved in overseas acquisitions before the COVID-19 pandemic hit the world economy.


CBAs completed by Indian and Chinese companies constitute the sample of the study. The performance has been analysed during the pre-COVID period spanning 17 years from 2001 to 2017. A comprehensive set of 14 financial ratios has been used to represent change (improvement/decline) in enterprises’ post-acquisition operating performance; these ratios have been divided into four broad groups: profitability, efficiency, solvency and liquidity ratios.


The performance of Indian companies has deteriorated significantly after the acquisition. However, there has been no change (deterioration/improvement), subsequent to CBAs, in the profitability of Chinese firms.

Practical implications

The findings of the study support that firms from emerging economies exploit CBAs as a “springboard” to obtain strategic assets including intangible resources and brands rather than to achieve synergies through economies of scale and scope. Apparently, outbound acquisitions by emerging economy firms are not driven by cost-reduction or revenue-generation activities.


None of the studies, to the best knowledge of the authors, has carried out performance analysis using a comprehensive set of financial ratios. The comparative study of two emerging economies is another valuable addition to the existing literature. The study holds the potential to serve as the benchmark to assess the performance of CBAs executed after COVID-19.



Samta Jain is Assistant Professor, Finance & Accounting, FORE School of Management, New Delhi, India.

The infrastructural support provided by the FORE School of Management, New Delhi (India), is greatly acknowledged.

Data availability statement: The data that support the findings of this study are available from the corresponding author upon reasonable request.

Conflict of interest: There is no conflict of interest in the manuscript.


Jain, S., Kashiramka, S. and Jain, P.K. (2024), "Performance of cross-border acquirers from India and China: its sustainability in the long-run?", Review of International Business and Strategy, Vol. 34 No. 1, pp. 40-61.



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