We use ﬁrm level data on cross-border mergers and acquisitions and share prices to explore the extent to which foreign ownership increases the proﬁtability of ﬁrms in emerging markets. We ﬁnd that cross-border ac¬quisitions add value to target ﬁrms. However, there is only weak evidence that such acquisitions add more value than purely domestic acquisitions. Further, most of this latter eﬀect occurs when the target ﬁrm’s country is in a crisis.
Romalis, J. (2011). The value of foreign ownership. Economic and Business Review, 13(1). https://doi.org/10.15458/2335-4216.1221