Cross-Border Acquisitions and Board Globalization in The World's Largest TNCS, 1995-2005

Bibliographic Data

ID2277271
AuthorsClifford L Staples (University of North Dakota, corresponding author)
Year2008
Volume49
Issue1
Pages31-51
Publication date2008-02-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueSociological Quarterly (JOURNAL)
Journal identifiersISSN: 0038-0253 • E-ISSN: 1533-8525
PublisherInforma UK Limited (PUBLISHER • GB)
DOI10.1111/j.1533-8525.2007.00105.x
OpenAlexW1621326857
LanguageEN
Citations received9
References cited16

Because of their size, power, and undemocratic nature, the cross-border activities of the world's transnational corporations (TNCs) are of particular interest to sociologists. Previous research shows that over the past decade the boards of directors of the world's largest TNCs have become more multinational, in other words are increasingly composed of individuals from different countries. During the same period there was also a dramatic increase in the number of cross-border TNC mergers and acquisitions (M&As). Anecdotal evidence suggests a connection between cross-border acquisitions and the increasingly multinational composition of TNC boards, and this study explores that relationship using data on the 148 largest TNCs and commercial banks. We find that a cross-border acquisition almost always results in a more multinational board of directors, that multinational boards are more likely to do cross-border deals, and that once a board becomes multinational it stays that way. The evidence also shows that multinational boards are concentrated in Europe, suggesting another dynamic between the integrating forces of the European Union and its TNCs. Because the results show increasing cross-national contact between the corporate elites who serve on multinational TNC boards, the results also provide some support for claims about the recent emergence of a “Transnational Business Class” or “Transnational Capitalist Class,” at least in Europe, although it is recognized that more study is needed to make the case that such a class is forming

Business · Economic geography · Economics · European union · Globalization · International business · International trade · Market economy · Mergers and acquisitions · Multinational corporation · Political science · Elite Sociology and Global Capitalism · Finance · Labor Movements and Unions · Law · Social and Cultural Dynamics

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