ESCP Europe

Langue

English

Publication year

01/01/2014

Although MNEs function across several domestic jurisdictions, little attention has been paid to political relationships between countries in IB research. Moreover, most IB research reflects an implicit assumption that cross-border investments receive a symmetric response from host country governments, irrespective of the bilateral relationships with the home country of investment. Using data from across 33 countries, we find that both political alignment and relative power between the dyadic countries influence the outcomes of cross border merger and acquisition completion and premium. These findings emphasize the need to account for the state of relations, and the relative power, between countries in IB research. [ABSTRACT FROM AUTHOR]