International Market Selection Criteria for Emerging Markets

--Thomas Buerki, Anup Nandialath, Ramesh Mohan and Stephanie Lizardi

In the context of an increasing importance of emerging markets in firms’ international strategies, this paper contributes to the still little researched topic of selection criteria used for international expansion when selecting among emerging markets. The existing literature on both International Market Selection (IMS) and emerging markets are reviewed in order to identify potentially important selection criteria. These criteria are then tested on a sample of professionals with work experience in business development functions at companies based in France. The results of the study indicate that 8 out of the 11 tested criteria are of major importance in IMS. One of these shortlisted criteria is less relevant for emerging markets, but another criterion not considered important in general is found relevant for emerging markets, constituting again a list of eight criteria that were identified as important when selecting a target among a group of emerging markets. Drawing on these findings, implications for managers with different kinds of responsibilities were identified to help them in the IMS process.

© 2014 IUP. All Rights Reserved.

The Long-Term Success of Mergers and Acquisitions

--Amporn Soongswang

Indian textile industry has made a notable contribution towards developing the Indian economy. It contributes nearly 14% of the total industrial production and around 3% to the GDP of the country. It also provides gainful employment to millions of people in India. In the present situation of turbulent market conditions, the domestic companies have been forced to reorient their strategies for managing odds arising out of tremendous competition in the post-reform period. Some of them have been able to adapt themselves in the changed market conditions while the others have failed to do so. In this backdrop, the present study seeks to analyze the profitability status of eighteen selected companies in the Indian textile industry during the post-reform era. Moreover, a special emphasis has been laid on the consistency dimension of the earning capability of the selected companies.

© 2014 IUP. All Rights Reserved.

Profitability Trends in Selected Textile Companies in India: A Cross-Sectional Analysis

--Sk. Mujibar Rahaman and Debasish Sur

This study examines the impact of takeovers on target and bidding firms traded on the Stock Exchange of Thailand (SET). The study investigates a long-window abnormal return or a period of twelve months before and after the announcements, using research methods such as the matched reference portfolio method and bootstrapped skewness adjusted t-statistic tests. The results suggest that the target firm’s shareholders gain substantial and positive abnormal returns, while bidding firm’s shareholders realize positive rather than negative abnormal returns. The total gains are positive at 25.48%, indicating that takeovers create values.

© 2014 IUP. All Rights Reserved.