Yoon, HD orcid.org/0000-0003-1423-9808, Peillex, J and Buckley, PJ orcid.org/0000-0002-0450-5589 (2020) Friends or Foes? Bilateral Relationships and Ownership Choice in Cross-border Acquisitions by Emerging Market Firms. British Journal of Management. ISSN 1045-3172
Abstract
Emerging market firms (EMFs) are increasingly recognized as a heterogeneous group of business enterprises, providing a unique context for examining the predictive power of existing theories. Drawing on real options and internalization theories, this paper predicts the contrasting effect of bilateral relationships on EMFs' ownership choice in cross‐border acquisitions. The conflicting conjectures are tested using data consisting of almost 1,000 cross‐border acquisition deals. Our results show that weak economic, political and military relationships between acquiring and target countries induce EMFs to opt for full acquisitions. The findings support the view of internalization theory, highlighting that EMFs prefer full ownership over partial ownership by coping with the political risk derived from weak bilateral relationships.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2020 The Authors. British Journal of Management published by John Wiley & Sons Ltd on behalf of British Academy of Management. This is an open access article under the terms of the Creative Commons Attribution License, which permits use, distribution and reproduction in any medium, provided the original work is properly cited. |
Dates: |
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Institution: | The University of Leeds |
Academic Units: | The University of Leeds > Faculty of Business (Leeds) > International Business Division (LUBS) (Leeds) |
Depositing User: | Symplectic Publications |
Date Deposited: | 09 Oct 2020 14:25 |
Last Modified: | 25 Jun 2023 22:27 |
Status: | Published online |
Publisher: | Wiley |
Identification Number: | 10.1111/1467-8551.12442 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:166361 |