Does negative political coverage affect the completion of cross-border mergers and acquisitions—Evidence from BRICS in the US market
Bibliographic Data
| ID | 22189135 |
|---|---|
| Authors | Jingyu Jia (0000-0001-7128-2621, Chongqing Technology and Business University), Yinglian Hu, HU Ying-lian (Chongqing Technology and Business University), Ping Wu (0000-0002-0788-6268, Beijing Normal University) |
| Year | 2024 |
| Volume | 8 |
| Issue | 8 |
| Pages | 5491 |
| Publication date | 2024-08-05 |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Journal of Infrastructure Policy and Development (JOURNAL) |
| Journal identifiers | ISSN: 2572-7923 • E-ISSN: 2572-7931 |
| Publisher | EnPress Publisher (PUBLISHER) |
| DOI | 10.24294/jipd.v8i8.5491 |
| OpenAlex | W4401347081 |
| Language | EN |
| Citations received | 1 |
| References cited | 3 |
High-quality implementation of cross-border mergers and acquisitions (cross-border M&As) is an important pathway for emerging-market multinational enterprises (EMNEs) to enhance their international competitiveness. However, in comparison to developed countries, cross-border M&As by EMNEs are often prohibited by the liability of origin caused by negative political coverage. How and why negative political coverage affect the completion of cross-border M&As by EMNEs? What are the contextual constraints that moderate the impact of negative political coverage on cross-border M&As completion? Based on the “liability of origin” theory, this paper addresses these questions using data from the Zephyr database on cross-border M&As by EMNEs in the United States from 2016 to June 2021 and employing a logit model for estimation. The research findings are as follows: (1) Negative political coverage leads to negative perceptions of emerging market countries by host country stakeholders, creating the liability of origin and stigmatizing the corporate nationality, thereby reducing the success rate of cross-border M&As by EMNEs. (2) Increasing geographical distance leads to information asymmetry, reinforcing the negative impact of negative political coverage on the completion of cross-border M&As by EMNEs. (3) Relevant mergers and acquisitions exacerbate the negative effect of negative political coverage on the success rate of cross-border M&As by EMNEs. (4) Being a publicly traded firm and having successful experience in cross-border M&As both intensify the negative impact of negative political coverage on the success rate of cross-border M&As by EMNEs
Business · Economics · International economics · International trade · Liability · Mergers and acquisitions · Monetary economics · Multinational corporation · Political risk · Political science · Politics · Corporate Finance and Governance · Global trade and economics · International Business and FDI · Law · Finance
| Citations per year | 0.5 |
|---|---|
| Citation span | 2024 - 2024 (1) |
| Highly cited | No |