Date of Award
Doctor of Philosophy
The emerging markets of Brazil, Russia, India, and China have been a major source of cross-border acquisitions during the recent global recession, spurring the need for increased scholarly investigation into the antecedents and characteristics of this form of internationalization by Emerging Market Multinational Enterprises (EMNEs). Furthermore, extant literature posits that new theories are needed to explain the EMNE internationalization process as the behavior appears to be fundamentally different from that of traditional MNEs from the developed world (DMNEs). This dissertation offers empirical evidence on both accounts by analyzing all cross-border acquisitions by publicly traded EMNEs from Brazil, Russia, India, and China for the last 11 years (2000-2010) and then comparing the findings to a parallel sample of publicly traded MNEs from a developed country. The first part of the dissertation builds on existing literature on EMNEs to examine how the sub-dimensions of institutional distance (Administrative, Economic, Financial, Political, Cultural, and Knowledge), as moderated by firm acquisition experience, affect the likelihood of acquisition completion, the duration of acquisitions, and equity participation. The second part adds a representative sample of DMNEs, to examine how MNE classification (EMNE vs. DMNE) influences the relationship of the sub-dimensions of institutional distance with the dependent variables. Interestingly, there was no evidence found to show that institutional distance decreased EMNE cross-border acquisition completion rates, counter to previous findings on DMNEs. However, many sub-dimensions of institutional distance were shown to decrease EMNE cross-border acquisition duration. Furthermore, many sub-dimensions of institutional distance increased EMNE equity participation. In regards to the moderating effect of firm acquisition experience on the three dependent variables, there was minimal support found in the study. With the exception of political distance, there was no support for a statistical difference in how the sub-dimensions of institutional distance alter acquisition completion for EMNEs and DMNEs. However, the sub-dimensions of distance were shown to have significantly different effects on acquisition duration and equity participation for EMNEs as compared to DMNEs. Thus, for EMNEs the effect of distance on acquisition completion, duration, and equity participation may be less negative or, in some cases, even positive, suggesting differences with DMNEs.
dissertation or thesis originally submitted to the local University of Memphis Electronic Theses & dissertation (ETD) Repository.
Gaffney, Nolan Thomas, "An Analysis of the Cross-border Acquisition Behavior of Emerging Market Multinational Enterprises" (2012). Electronic Theses and Dissertations. 512.