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Introduction
The business activities pursued by multinational companies from emerging markets are among the key research questions faced by international business scholarship in the twenty-first century (Mathews, 2006). Such key questions concern entry mode choices and their performance implications (Griffith et al., 2008). Jormanainen and Koveshnikov (2012) call for more research to be conducted on the performance implications of the internationalization of companies originating from emerging markets. Within this context, cross-border acquisitions (CBAs) appear to be of particular interest as the number and size of such transactions undertaken by emerging market multinational corporations (EMNCs) has risen from 10 per cent of their total value worldwide in 2003 to 40 per cent of this value in 2012 (UNCTAD, 2015, p. 11). Research concerning the impact of such transactions on corporate performance has produced mixed and inconsistent results. Moreover, there is very little research on the specific case of CBAs by multinationals originating from mid-range emerging markets, such as those of Central and Eastern Europe (CEE).
Studies of mergers and acquisitions (M&As) completed in developed economies indicate that such transactions often result in value destruction for the acquirers’ shareholders (Danbolt and Maciver, 2012; King et al., 2004; Roll, 1986). Some studies have shown that these losses may be attributed to a small number of failed transactions generating substantial losses (Moeller et al., 2005), but overall, a high risk of failure seems undisputed. Analyses of CBAs produce mixed evidence with some studies showing that CBAs perform worse than domestic ones (Correa, 2009; Moeller and Schlingemann, 2005), while others reveal quite the opposite (Danbolt and Maciver, 2012; Dutta et al., 2013). The majority of these studies suggest that shareholders either experience a loss in value or see effects that are entirely neutral. Furthermore, research focusing on the CBAs carried out by emerging market multinationals falls short of providing conclusive results. Some studies show positive outcomes for bidders (Gubbi et al., 2010), while others find the contrary (Aybar and Ficici, 2009).
This suggests the need for further research not only to verify and expand on previous findings but also to examine the performance of CBAs in other, previously unexplored contexts. CEE offers such a specific context. While the CEE countries which are members of the...