Emerging Market MNCs' Cross-Border Acquisition Completion: Institutional Image and Strategies

He, X.; Zhang, J.

Abstract

This study investigates the negative effect of the home country’s institutional image on emerging-market multinational companies’ acquisitions, and how these companies can increase their acquisition completion by overcoming this effect. We propose that a foreign acquisition is more likely to be completed if: (1) the acquirer has an extended home base - it has inward internationalization experience, or it acquires through overseas subsidiaries; and (2) it enters institutionally close markets. Using longitudinal data on 13,259 acquisitions between 1996 and 2012 by firms from ten major emerging economies, we empirically test our hypotheses. The findings have important implications for scholars, policymakers and managers.

Citation

He, X., & Zhang, J. (2018). Emerging Market MNCs' Cross-Border Acquisition Completion: Institutional Image and Strategies. Journal of Business Research, 93, 139-150. https://doi.org/10.1016/j.jbusres.2018.04.014

• Journal Article Type: Article
• Acceptance Date: Apr 15, 2018
• Online Publication Date: Apr 26, 2018
• Publication Date: Dec 1, 2018
• Deposit Date: Apr 26, 2018
• Publicly Available Date: Oct 26, 2019
• Journal: Journal of Business Research
• Print ISSN: 0148-2963
• Publisher: Elsevier
• Peer Reviewed: Peer Reviewed
• Volume: 93
• Pages: 139-150
• DOI: https://doi.org/10.1016/j.jbusres.2018.04.014
• Keywords: emerging-market multinational company, institutional image, foreign acquisition completion, country of origin, home base, FDI location
• Public URL: https://durham-repository.worktribe.com/output/1333385