@techreport{NBERw10872,
 title = "Acquiring Control in Emerging Markets: Evidence from the Stock Market",
 author = "Anusha Chari and Paige P. Ouimet and Linda L. Tesar",
 institution = "National Bureau of Economic Research",
 type = "Working Paper",
 series = "Working Paper Series",
 number = "10872",
 year = "2004",
 month = "November",
 URL = "http://www.nber.org/papers/w10872",
 abstract = {When firms from developed markets acquire firms in emerging markets, market-capitalization-weighted monthly joint returns show a statistically significant increase of 1.8%. Panel data estimations suggest that the value gains from cross-border M&A transactions stem from the transfer of majority control from emerging-market targets to developed market acquirers' joint returns range from 5.8% to 7.8% when majority control is acquired. Announcement returns for acquirer and target firms estimate the distribution of gains and show a statistically significant increase of 2.4% and 6.9%, respectively. The evidence suggests that the stock market anticipates significant value creation from cross-border transactions that involve emerging-market targets leading to substantial gains for shareholders of both acquirer and target firms.},
}