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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.

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.

The global economy has witnessed an exponential increase in cross-border acquisitions (CBAs) by emerging market companies (EMCs), demanding a relook at their internationalization strategy. The purpose of the study is to investigate whether the announcement of CBAs by EMCs creates value for the equity-holders of acquiring firms and identify factors affecting the valuation of acquiring companies.

The paper investigates the announcement impact of CBAs of CNX Nifty 500 Indian and SSE 380 Chinese companies. The event study analysis of 553 Indian and 125 Chinese acquisitions supports the contention that CBAs are indeed a strategic choice of EMCs for value creation.

CBAs generate positive and statistically significant abnormal returns for shareholders of both Indian and Chinese acquirers. The markets, however, differ in terms of their motivations; country-level factors have been observed to exert significant influence on the returns of Indian acquirers. Indian companies experience larger value creation on acquiring firms established in developed, institutionally closer and/or economically distant markets. The findings support the asset-seeking motive of Indian companies.

The research work contributes to the evolving stream of CBAs literature with a focus on the globalization strategies of EMCs. The present study is a modest attempt to lay the foundation for a new theoretical framework (asset-seeking perspective) of overseas acquisitions from emerging economies. The existing studies on emerging economies have emphasized, in isolation, either Indian CBAs or international acquisitions by Chinese firms. Being so, the study is unique and original in the sense that it is a comparative study of India and China.

The purpose of this paper is to find out the best method for forecasting European Union Allowance (EUA) returns and determine its price determinants. The previous studies in this area have focused on a particular subset of EUA data and do not take care of the multicollinearities. The authors take EUA data from all three phases and the continuous series, adopt the principal component analysis (PCA) to eliminate multicollinearities and fit seven different homoscedastic models for a comprehensive analysis.

PCA is adopted to extract independent factors. Seven different linear regression and auto regressive integrated moving average (ARIMA) models are employed for forecasting EUA returns and isolating their price determinants. The seven models are then compared and the one with minimum (root mean square error is adjudged as the best model.

The best model for forecasting the EUA returns of all three phases is dynamic linear regression with lagged predictors and that for forecasting EUA continuous series is ARIMA errors. The latent factors such as switch to gas (STG) and clean spread (capturing the effects of the clean dark spread, clean spark spread, switching price and natural gas price), National Allocation Plan announcements events, energy variables, German Stock Exchange index and extreme temperature events have been isolated as the price determinants of EUA returns.

The current study contributes to effective carbon management by providing a quantitative framework for analyzing cap-and-trade schemes.

This study differs from earlier studies mainly in three aspects. First, instead of focusing on a particular subset of EUA data, it comprehensively analyses the data of all the three phases of EUA along with the EUA continuous series. Second, it expressly adopts PCA to eliminate multicollinearities, thereby reducing the error variance. Finally, it evaluates both linear and non-linear homoscedastic models incorporating lags of predictor variables to isolate the price determinants of EUA.

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.

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.

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.

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.

Certified emission reduction (CER) survey studies in the literature are quite restrictive in scope. These studies are based on convenience sampling and, therefore, cannot be relied upon. The current study comprehensively surveys the strengths, weaknesses and suggestive measures for clean development mechanism (CDM). This paper systematically aims to conduct the survey on top 50 companies in terms of CER volume.

The survey is aimed to target top 50 companies which account for 55 per cent of total number of CERs of all the Indian projects. The online survey link was sent to all 50 companies, and the finance managers were followed up regularly over a period of one year. Finally, 37 responses (a response rate of 72 per cent) have been received.

“CER is cheaper than EUA for Emission Compliance” is rated as topmost strength and “Methodology of Financial Additionality is Subjective” is rated as topmost weakness of CER mechanism. Removal of Quantitative Restrictions on CERs is rated as the topmost suggestive measure for stabilization of CER. Companies overwhelmingly favored continuation of banking and inclusion of carbon emission cost as one of the internal cost of business.

The current study throws light on future policy interventions for minimization of carbon footprint and efficient energy management.

This study gives vital reflections for stabilization of CDM. This will help sustainable development, generation of green energy, mitigation of carbon emission at the least cost and employment generation in developing countries because of CDM project development.

This study differs from earlier studies because it comprehensively surveys the pertinent issues relating to strengths, weaknesses and suggestive measures for CDM. It also differs from them because it is not based on convenience sampling. It conducts the survey systematically on top 50 companies in terms of CER volume. Therefore, unlike previous studies of questionable validities, the findings of this study can be safely considered for policy interventions

The purpose of the study is to gain insights into the post-acquisition integration practices of Indian multinational companies involved in cross-border acquisitions.

The study is based on the primary data from a sample of Indian companies engaged in cross-border acquisitions. A survey (based on a structured questionnaire) method has been used to collect the relevant data.

Majority of the sample companies have successfully managed the post-acquisition phase and realized the anticipated synergies. These companies recognize the importance of cultural integration, people/HR integration and formal communication channel during the post-acquisition phase. Despite the integration strategy being profoundly influenced by cultural differences between two companies, the emphasis on these cultural differences especially during the due-diligence stage is lacking. These aspects have not been examined adequately during the due-diligence phase.

Based on the findings, a model of cross-border acquisition and integration process (AIP) in the context of emerging economies has been proposed; the model is expected to be applicable across all industries and organizations, especially in emerging economies. The proposed model should essentially help senior and middle managers to develop successful integration strategies. Moreover, the study holds immense potential for practitioners and academicians by providing them with a new thought on executing successful acquisitions.

To the best of the authors’ knowledge, no study has examined the post-acquisition integration approach in emerging economies. Moreover, rarely has any AIP model applicable across several organizations of all sizes and types from emerging economies been suggested in the literature. The suggested AIP model is the unique proposition of the paper.

Purpose – The purpose of this study is to investigate whether a firm’s cost structure (specifically, its cost stickiness) is associated with environmental, social, and governance (ESG) sustainability factors of performance and disclosure.

Methodology/approach – This study uses MCSI Research KLD Stats (KLD) and Bloomberg databases for the 13-year period from 2003 to 2015 in constructing ESG performance and disclosure variables, respectively. The authors adopt the general cost stickiness models from Anderson, Banker, and Janakiraman (2003) and Banker, Basu, Byzalov, and Chen (2016) to perform the analysis.

Findings – The authors find that a firm’s level of cost stickiness is positively associated with certain sticky corporate social responsibility (CSR)/ESG activities (both overall and when separately classified as strengths or concerns) but not with other nonsticky CSR activities. The authors also show that the association between cost stickiness and ESG disclosure is incrementally stronger for firms with CSR activities classified as sticky. Furthermore, the authors provide evidence that ESG disclosure is greater when both cost stickiness and the degree of sticky CSR activities increase. The authors show that when cost stickiness is high and CSR activities are sticky, management has incentives to increase CSR/ESG sustainability disclosure to decrease information asymmetry.

Originality/value – The findings present new evidence to understand how management integrates cost management strategies with various dimensions of sustainability performance decisions and show that not all ESG activities are equally effective when it comes to cost stickiness. The authors also demonstrate that increased sustainability disclosure helps reduce information asymmetry incrementally more when both costs are sticky and CSR activities are sticky.

Global investors demand, regulators require, and companies disclose their sustainability performance information, and scholars have started to conduct research on sustainability performance, reporting and assurance. The goal of firm value creation can be achieved when management considers the interests of all stakeholders and integrates all five economic, governance, social, ethical, and environmental (EGSEE) dimensions of sustainability performance into managerial strategies, actions and reporting. This paper provides a synthesis of research on sustainability and presents a theoretical framework consisting of theories and standards relevant to all five EGSEE dimensions of sustainability performance and risks and their integration into corporate culture, business models and reporting in creating stakeholder value.

The purpose of this paper is to present and test a methodology, extending the concept of hierarchical Petri nets, to discover conflicts in a distribution channel.

The approach involves linking different levels of the supply chain and detecting conflicts occurring when the single entities, each optimized for its own operations, are combined together in a supply chain. Specifically, a methodology is proposed for synthesizing individual Petri Net models combined with matrix equations in order to detect and manage conflicts in a supply chain. These conflicts may stem from differing goals, planning and resources.

The methodology offers the user the ability to investigate the potential for conflicts in the system and manage the system to avoid such conflicts before they occur. The proposed approach holds promise for both the short term and long term for effective supply chain management and design. This would enable the supply chain to put sufficient protection (e.g. buffers) in strategic locations relative to the potential conflict or contingency plans in place to handle the conflict when it occurs.

While the ability to discover and pre‐empt conflicts would be a valuable asset to the management and design of supply chains, there is little insight found, to date, in the research on effective methods to realize detection. The current paper provides a systematic approach through the development of a hierarchical Petri net extension to detect conflicts prior to occurrence in an integrated supply chain system.