The value of foreign ownership

We use rm level data on cross-border mergers and acquisitions and share prices to explore the extent to which foreign ownership increases the pro tability of rms in emerging markets. We nd that cross-border ac quisitions add value to target rms. However, there is only weak evidence that such acquisitions add more value than purely domestic acquisitions. Further, most of this latter e ect occurs when the target rm’s country is in a crisis.