Inorganic growth of technology sector firms in emerging markets: Influence of firm-specific factors in Indian firms' M&A activities. Issue 1 (19th January 2015)

• Record Type: Journal Article
• Authors: Das, Arindam; Kapil, Sheeba
• Is Part Of: International journal of emerging markets. Volume 10:Issue 1(2015)
• Page Start: 52
• Page End: 72
• Publication Date: 2015-01-19
• Subjects: India -- Emerging markets -- Technology -- Acquisitions and mergers; Business enterprises -- Finance -- Periodicals; Investments -- Developing countries -- Periodicals; Commerce -- Periodicals; Developing countries -- Economic conditions -- Periodicals; 330.91724
• DOI: 10.1108/IJOEM-06-2012-0057
• Languages: English
• ISSNs: 1746-8809

Abstract

Abstract : Purpose: – Emerging economies and technology firms in these economies have witnessed significant increase in mergers and acquisitions (M&A) activities in recent years. The purpose of this paper is to conduct an empirical research on Indian technology firms and analyze the influence of firm-specific factors on firms' M&A decisions. Design/methodology/approach: – A set of 372 Indian firms in the technology sector have been studied for the period 2001-2011, a decade when this sector has seen maximum number of M&A transactions. Findings: – The results show that financially strong, low-debt firms with high market capitalization are the typical acquirers in this segment and they tend to be serial acquirer too. Originality/value: – Contrary to established findings in developed economies, the authors find that Indian technology firms' acquisition decisions are not associated with their R&D activities, opening up scope for investigations on role of technology assets in emerging market firms' acquisition decisions.