A Comparative Study on Determinants of Cross-Border Mergers and Acquisitions Performance of Emerging Economies’ Multinational Enterprises: Evidence from Chinese and Indian Firms

EMNEs’ M&A is an area of growing interest among managers, entrepreneurs, and scholars. This study marks the beginning of a research path that focuses on the comparison of determinants of EMNEs’ M&A performance in developed markets. Specifically, we examined the effects of three main factors (relative size of the target, cultural distance, and institutional distance) on M&A performance of Chinese and Indian firms. Using a sample of 433 deals that have successfully completed by Chinese and Indian firms from 2000 to 2014, our findings show that relative size has a U-shaped relationship with M&A of Indian acquirers but no relationship with the performance of Chinese acquirers. We also found that cultural distance and institutional distance respectively have a negative and a positive effects on M&A performance of Chinese firms, while there is no relationship between the national differences and the performance of Indian firms.