The Impact of Religious and Ethnic Similarity on Alliance Formation and Announcement Returns

We investigate the impact of inter-firm connections on alliances. We find that both professional connections and social connections, borne out of board interlocks, employment ties and educational ties, increase the likelihood of alliance formation. In addition, the market reacts more favorably to alliance announcements in the presence of such connections, and this positive valuation effect increases with the degree of information asymmetry between the partner firms. Our findings are consistent with inter-firm connections creating value because they facilitate the flow of information between partner firms, thereby reducing moral hazard concerns and the risk of ex-post opportunistic behavior.

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Tournament Incentives and Acquisition Performance

The Review of Corporate Finance Studies ◽

10.1093/rcfs/cfaa001 ◽

2020 ◽

Author(s):

Iftekhar Hasan ◽

Marco Navone ◽

Thomas Y To ◽

Eliza Wu

Keyword(s):

Senior Executives ◽

Acquisition Performance ◽

Risk Seeking ◽

Compensation Ratio ◽

Announcement Returns ◽

Seeking Behavior ◽

Negative Effect ◽

Editorial Decision ◽

Alternative Identification ◽

The Impact

Abstract This paper examines the impact of promotion-based tournament incentives on corporate acquisition performance. Measuring tournament incentives as the compensation ratio between the CEO and other senior executives, we show that acquirers with greater tournament incentives experience lower announcement returns. Further analysis shows that the negative effect is driven by the risk-seeking behavior of senior executives induced by tournament incentives. Our results are robust to alternative identification strategies. Our evidence highlights that senior executives, in addition to the CEO, play an influential role in acquisition decisions. (JEL G30, G34, G41, J31, J33, J62) Received: November 5, 2018; editorial decision January 6, 2020 by Editor Isil Erel.

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Alliance Politics Amid the BJP’s Rise: More Continuity than Change in 2019

Studies in Indian Politics ◽

10.1177/2321023019874894 ◽

2019 ◽

Vol 7 (2) ◽

pp. 191-205

Author(s):

Adam Ziegfeld

Keyword(s):

Voting Behaviour ◽

Alliance Formation ◽

Alliance Politics ◽

Bharatiya Janata Party ◽

Strong Performance ◽

Run Up ◽

The Impact

Pre-election alliances have long figured prominently in Indian elections. Has the politics surrounding pre-election alliances changed with the rise of the Bharatiya Janata Party (BJP)? This article analyzes patterns of election alliance formation across India’s states and examines the extent to which these alliances affected the outcome of the 2019 election. It finds that patterns of alliance formation in the run-up to the 2019 election did not, on the whole, differ noticeably from prior elections. Though the BJP’s strong performance muted the impact of some key alliances, election alliances nevertheless had a perceptible impact on the final allocation of seats and appear to have influenced voting behaviour largely as anticipated.

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Individual Time Perspective And Alliance Formation Behavior

Journal of Business & Economics Research (JBER) ◽

10.19030/jber.v4i10.2707 ◽

2011 ◽

Vol 4 (10) ◽

Author(s):

Peg Thoms ◽

Alfred G. Warner ◽

Janice A. Totleben

Keyword(s):

Time Perspective ◽

Future Time Perspective ◽

Time Orientation ◽

Alliance Formation ◽

Font Size ◽

Future Time ◽

Past Behavior ◽

Formation Behavior ◽

The Impact

The impact of time orientation on leaders’ behavior has been largely unexplored in research.  This study examined the role of time perspective in alliance formation.  Using a game, participants formed alliances using information about past behavior.  Findings suggest that participants with future time perspective were more likely to initiate alliances and those with a past-negative perspective were more likely to cooperate.  This finding supports the Theory of Leadership and Time Orientation.

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Exploring Critical Success Factors of Competence-Based Synergy in Strategic Alliances: The Renault–Nissan–Mitsubishi Strategic Alliance

Journal of Risk and Financial Management ◽

10.3390/jrfm14080385 ◽

2021 ◽

Vol 14 (8) ◽

pp. 385

Author(s):

Andrejs Čirjevskis

Keyword(s):

Strategic Alliances ◽

Critical Success Factors ◽

Success Factors ◽

Strategic Alliance ◽

The Arctic ◽

Future Research ◽

Alliance Formation ◽

Quantitative Research Methods ◽

Critical Success ◽

The Impact

This paper aims to unbundle the antecedents of competence-based synergy in the strategic alliance formation process by employing the ARCTIC framework. The current research provides a new empirical application of the ARCTIC framework to reveal the success factors of reciprocal synergies of the Renault–Nissan–Mitsubishi strategic alliance in the automotive industry. By taking a resource-based view on the sources of competitive advantage, the current paper contributes to theoretical and practical issues of global strategic alliances as part of the existing literature on strategic management, international business, and corporate finance. By bridging qualitative and quantitative research methods, the paper provides validity to the ARCTIC framework with an application of the real option valuation. A conceptual model of research helps practitioners and scholars to explore critical success factors of alliance formation and to predict a competence-based synergy of strategic alliances. Future research may explore the institutional context of strategic alliances, specifically, exploring the impact of the French and Japanese governments on the Renault–Nissan–Mitsubishi alliance’s synergies.

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