Abstract
Abstract. The objective of this paper is to examine the impact of financial crisis on the International Expansion activities of MNCs from Eastern Europe. This study has two interrelated foci. The fist one provides an empirical analysis of international expansion activities that span around the period of 2006 – 2016. The second focus examines market reaction to the announcements of international mergers and acquisations actualized by these firms to see whether there is any value creation for firms in these activities. The paper utilizes Securities Database (SDC) Platinum Worldwide Mergers and Acquisitions database in examining 621 international mergers and acquisitions activities of various MNCs from the Czech Republic, Slovakia, Poland and Hungary. In order to assess value creation, the paper utilizes Event Study Methodology. Overall, the results suggest that Eastern European firms’ global mergers and acquisition activities increase during the beginning of financial crisis, but later the activities have slowed down. Hence, the study indicates that the effects of crisis on these firms’ activities were not immediate but began recently as their activities decreased since the beginning of 2009. Event Study results does not indicate value creation.
Keywords. Firms from the Eastern Europe; International investments, Foreign direct investment; Cross-border mergers and acquisitions; Emerging market multinationals; Internationalization; Event study.
JEL. F21, F23, F37, G30, G34.References
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