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The Performance of High-Tech and Low-Tech Mergers and Acquisitions: Evidence From Emerging Market Acquirers
Nowadays, innovation is the crucial factor of economic development since it reduces dependence on foreign technology, encourages manufacturing of high-tech products that subsequently enables companies to maintain a competitive advantage within their domestic markets as well as on the global market. The awareness of the need of production conversion has led to a significant growth of cross-border high-tech mergers and acquisitions involving fast-growing emerging markets. However, the question of innovative mergers and acquisitions' effectiveness remains contraversial. The aim of this research is to evaluate the efficiency of high-tech and low-tech cross-border mergers and acquisitions for bidders from the most developed emerging markets. The empirical analysis of 129 high-tech and 214 low-tech merges and acquisitions initiated by emerging market firms during the period of 2000 - 2016 has revealed higher cumulative abnormal returns as a result of high-tech transactions announcement. Besides, there were found different directions of influence of M&A performance factors depending on the group of high-tech or low-tech transactions.