Cross-border M&As: Theorizing the negative effect of political ideology mismatch with host country labor institutional context on employee outcomes

2021 ◽  
Vol 128 ◽  
pp. 164-173
Author(s):  
Dawn Yi Lin Chow ◽  
Xi Wen Chan ◽  
Evelyn Micelotta
Keyword(s):  
Host Country ◽  
Political Ideology ◽  
Institutional Context ◽  
Employee Outcomes ◽  
Cross Border ◽  
Negative Effect

scholarly journals China's Cross-border Mergers and Acquisitions: A Contextual Distance Perspective

2016 ◽  
Vol 12 (3) ◽  
pp. 449-456 ◽  
Author(s):  
Jiatao Li ◽  
Guoguang Wan
Keyword(s):  
Mergers And Acquisitions ◽  
Host Country ◽  
Large Dataset ◽  
Chinese Firms ◽  
Research Attention ◽  
Global Policy ◽  
Cross Border ◽  
Political Risks ◽  
Greenfield Investments ◽  
Institutional Contexts

Outward foreign direct investment (OFDI) by Chinese firms has received considerable research attention recently (Li, Cui, & Lu, 2014; Lu, Liu, Wright, & Filatotchev, 2014; Xia, Ma, Lu, & Yiu, 2014). In particular, a number of studies have focused on cross-border mergers and acquisitions (M&As) involving Chinese firms (Li, Li, & Wang, 2016; Li & Xie, 2013; Xie & Li, 2016; Zhang, Zhou, & Ebbers, 2011). Following Child and Marinova's (2014) suggestion that both the home and host country institutional contexts play important roles in determining M&A activity, Buckley and his colleagues have examined how China's ‘Go Global’ policy influences the location choices in Chinese acquisitions and also how host country political risks affect such activities (Buckley et al., 2016). They looked into national political and legal conditions (see also Meyer, Estrin, Bhaumik, & Peng, 2009), and also examined a large dataset on China's cross-border M&As. Much of the previous work in this area has focused on greenfield investments (Duanmu, 2012; Kang & Jiang, 2012), so the work of Buckley et al. (2016) has broken new ground.

Do consumers support the cross-border charitable activities as the same?

2020 ◽  
Vol 11 (3) ◽  
pp. 441-458
Author(s):  
Zelin Tong ◽  
Tingting Li ◽  
Wenting Feng ◽  
Yuanyuan Zhou ◽  
Ling Zhou
Keyword(s):  
Social Identity ◽  
Host Country ◽  
Home Country ◽  
Identity Transformation ◽  
Extensive Literature ◽  
Content Type ◽  
Cross Border ◽  
National Power ◽  
Charitable Activities ◽  
The Impact

Purpose This study aims to investigate the impact of cross-border charitable activities on host- and home-country consumers based on the social identity theory. Design/methodology/approach Through an extensive literature review and two experimental designs, this study establishes the research framework and hypothesises the relationships between the constructs. Findings National power moderates the impact of cross-border charitable activities on host- and home-country consumers. In particular, compared to countries with high national power, countries with low national power undertaking cross-border charitable activities will receive more positive reactions from the host-country consumers, and, conversely, more negative reactions from the home-country consumers. Research limitations/implications From the consumer perspective, this study finds that brand cross-border charitable activities have different influences on consumers in different countries because of an identity transformation mechanism that exists between the “insiders” and the “outsiders”, which is different from the assumptions of western theories. Practical implications The findings provide insights for undertaking brand cross-border charitable activities. Originality/value Previous studies, which are based on social identity categorisation, assume that cross-border charitable activities have a more positive impact on home-country consumers than host-country consumers. However, this study adopts the research paradigm of social identity relationisation and draws an opposite conclusion, which not only expands the theory of local intergroup interaction, but also clarifies how brand cross-border charitable activities influence Chinese consumers.

scholarly journals Formal institutional uncertainty and equity sought on foreign market entry: does industry matter?

2020 ◽  
Vol 30 (3) ◽  
pp. 421-440
Author(s):  
Kashif Ahmed ◽  
Ralf Bebenroth ◽  
Jean-François Hennart
Keyword(s):  
Host Country ◽  
Developed Countries ◽  
Classification Systems ◽  
Foreign Market Entry ◽  
Less Developed Countries ◽  
Content Type ◽  
Cross Border ◽  
Technology Industry ◽  
Industry Classification ◽  
Institutional Uncertainty

Purpose This study aims to examine how the effect of host country formal institutional uncertainty on the percentage of equity sought in cross-border acquisitions (CBAs) is moderated by the host country industry (i.e. targets from the technology versus those from the non-technology industry). Design/methodology/approach This study is based upon the legitimacy perspective of institutional theory and uses Tobit regression analysis on a sample of 1,340 CBAs. Findings Results show that cross-border acquirers prefer a lower equity level for targets in institutionally less developed countries and that this negative effect of the host country institutional risk on the equity percentage sought is more pronounced for technology-based targets. Research limitations/implications Three major limitations of the study are as follows: The data were collected from only Japanese acquirers. The study measured formal institutional uncertainty by applying only secondary data. The study used the Bloomberg Industry Classification Systems, instead of the Standard Industry Classification that has been used widely in prior studies. Practical implications This study shows that the industry selected has a bearing on equity sought in CBAs. Investing in institutionally less developed countries is particularly challenging when the targets of acquisition are in the technology industry. Originality/value To the best of the authors’ knowledge, this is the first study that investigates the moderating effects of an industry on the relationship between host country formal institutional uncertainty and the percentage of equity sought in CBAs.

Host country institutional pressures and cross-border relationship governance

2011 ◽  
Vol 20 (3) ◽  
pp. 324-337 ◽  
Author(s):  
Mons Freng Svendsen ◽  
Sven A. Haugland
Keyword(s):  
Host Country ◽  
Institutional Pressures ◽  
Cross Border

Cross-border Acquisitions and Host Country Determinants: Evidence from Indian Pharmaceutical Companies

2016 ◽  
Vol 17 (3) ◽  
pp. 684-699 ◽  
Author(s):  
Bhargavi Jayanthi ◽  
S.N.V. Sivakumar ◽  
Arunima Haldar
Keyword(s):  
Host Country ◽  
Pharmaceutical Companies ◽  
Cross Border

scholarly journals The Impact of Protectionism on the Completion and Duration of Cross-Border Acquisitions

2021 ◽  
Author(s):  
◽  
Rehanna Callaghan
Keyword(s):  
National Security ◽  
Host Country ◽  
Firm Size ◽  
Financial Services ◽  
Foreign Firms ◽  
Gdp Growth ◽  
Target Firm ◽  
Cross Border ◽  
Time Required ◽  
The Impact

<p>This study investigates the impact of protectionism in a host country on the completion likelihood of an announced cross-border acquisition and the time required to complete the acquisition. Adopting a legitimacy perspective, I identify and test boundary conditions at the firm and national levels to study the relationship between protectionism and cross-border acquisition completion and duration. I hypothesise that in host countries with a high level of protectionism, as reflected by the level of non-tariff barriers, cross-border acquisitions are less likely to be completed and the time taken to close the acquisition deal increases. I also propose that the relationships between protectionism and acquisition outcomes are moderated by critical target firm characteristics and the host country's economic condition. Specifically, these moderators include target firm size, target firm performance, the degree to which the target industry is sensitive to national security concerns, and the host country's GDP growth. I test these hypotheses using a sample of 675 cross-border acquisition attempts by firms in the manufacturing and services industries (excluding financial services) into the U.S. and Canada between 1995 and 2015. The results of the statistical analysis support the prediction that the higher the degree of protectionism, the lower likelihood of acquisition completion and the longer the duration is between acquisition announcement and completion. Findings also support the predicted moderating effects of the target firm size, performance and national security concern. However, the hypothesised moderating effect of the host country's GDP growth was not supported by the results. This finding suggests that host country protectionism impacts cross-border acquisition attempts, irrespective of the host country's economic development. These findings have significant implications for legitimacy-based explanations of cross-border acquisitions. In particular, the results of this study indicate that when protectionism is high, the host country is more likely to raise concerns around the legitimacy of foreign firms. In turn, these firms face adverse host country scrutiny which can result in a failed acquisition attempt, or an extended and therefore, costlier acquisition deal. The framework and findings of this study contribute to an institution-based view and, in particular, to a legitimacy-based perspective in the research on the internationalisation of firms.</p>

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