This study investigates the Internationalization strategies and their value implications of
Latin American Emerging Market Multinationals (LAEMMs). We examine 66 mergers and
acquisitions (M&A) announcements, 20 joint venture (JV) announcements and 9 Strategic
Alliance (SA) announcements associated with LAEMMs during the sample period of 1991-
2005. First, the paper explores the effects of cross-border expansion patterns on firm value
creation. Second, it examines market reaction to the announcements of cross-border
expansion patterns. Third, it evaluates firm performance in relation to the cross-border
expansion activities. This study finds that most LAEMMs do not earn significantly positive
abnormal returns during the event windows defined in this study. However, it is generally
evident that there is value creation in international expansion activities. According to the
event-study results, value creation is mostly associated with SAs. This finding is consistent
with previous research. It is also indicated that most SA announcements are received by the
market positively. JVs also experience value creation during the event windows utilized in
this study. However, value creation of JVs is not to the extent that of SAs. Market reaction to
JV announcements is also positive, but not to the degree of SAs.
