Historical ties between nations: How do they matter in cross-border mergers and acquisitions?

Chowdhury, Reza H.; Maung, Min

doi:10.1016/j.iref.2018.02.022

Cited by 18 publications

(13 citation statements)

References 78 publications

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“…This helps investors obtain legitimacy in host countries. Further, historical ties may promote an enduring interaction which can help develop a strong social relationship between two countries (Chowdhury and Maung, 2018).…”

Section: The Liability Of Foreignnessmentioning

confidence: 99%

“…Moreover, the historical relationship could vary from being favourable to being hostile. The character of the historical relationship is likely to effect economic exchanges between two countries, including FDI (Chowdhury and Maung, 2018). We explore these issues in what follows.…”

Section: Introductionmentioning

confidence: 99%

“…Makino and Tsang (2011) examine ties between France and Vietnam and their effect on FDI, Kedia and Bilgili (2015) examine links between Russia and former Soviet Republics to investigate the effect of institutional distance between home and host countries on the percentage of shares acquired in target companies. Chowdhury and Maung (2018) consider how historical ties between home and host countries contribute to the total number of cross-border mergers and acquisitions (CBMAs) from colonies to colonisers. The papers by Makino and Tsang (2011) and Kedia and Bilgili (2015) are narrowly focused on historical ties between two nations, whereas Chowdhury and Maung (2018) consider CBMA data from 37 excolonies (including for example, USA, Canada, Australia and ten African countries).…”

Section: Introductionmentioning

confidence: 99%

“…Chowdhury and Maung (2018) consider how historical ties between home and host countries contribute to the total number of cross-border mergers and acquisitions (CBMAs) from colonies to colonisers. The papers by Makino and Tsang (2011) and Kedia and Bilgili (2015) are narrowly focused on historical ties between two nations, whereas Chowdhury and Maung (2018) consider CBMA data from 37 excolonies (including for example, USA, Canada, Australia and ten African countries).…”

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

Foreign Direct Investment to Africa: Is There a Colonial Legacy?

2020

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Section: The Liability Of Foreignnessmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Foreign Direct Investment to Africa: Is There a Colonial Legacy?

2020

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“…However, central to the positive or negative effect of colonial legacy on the development is the nature of the colonial institutions, defined comparatively as inclusive institutions and extractive institutions (Acemoglu & Johnson, 2012), with the former entailing the process of democracy and protecting the property rights to enhance long-run development whereas the latter serving for political elites to extract resource and to centralize the authority. Not only the formal institutional legacy matters, but also informal institutional legacy reflecting the historical relationship plays an important role (Guiso et al, 2016a;2016b, Chowdhury & Maung, 2018.…”

Section: The Role Of Colonial Legacymentioning

confidence: 99%

The Employment Effect of Inward FDI in China: What Do We Learn from the History?

Wang¹,

Luo

2020

SSRN Journal

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This study investigates the long-term influence of colonial legacy on the nexus between inward foreign direct investment (FDI) and labor market. We construct a panel dataset containing 285 Chinese cities 2011 to 2017 along with detailed information about Chinese modern history during 1842-1955). Our results show that the inward FDI has a positive effect on employment and such an effect is more pronounced in the regions with colonial influence than their counterparts. Further, we find that the experience of Western colonization strengthens the positive effect of inward FDI on employment whereas the experience of Japanese colonization weakens or even overturns this positive effect. These findings are robust to controlling for the endogeneity between inward FDI and employment as well as employing alternative measures for the colonization.

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History Matters: Colonial-Based Connectivity and Foreign Headquarter Location Choice

Botella-Andreu

Lavoratori

2022

Manag Int Rev

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In this study, we argue that European countries’ extensive relationships with former colonies represent a location factor that attracts foreign headquarter investments. The strategic role of foreign headquarters as coordinators, opportunity detectors, and global bridgeheads makes the location choice of headquarter activities sensitive to historical-based institutional connections. Drawing on a sample of 2230 foreign headquarter investments in Europe, we find that the stronger the combined effect of historical connections and current economic relationships with former colonies, the higher the probability of attracting headquarter investment projects. We refer to this combined characteristic as colonial-based connectivity. The study findings support the hypothesis that past colonial relationships and historical context influence FDI decisions and location preferences. We contribute to the literature by advancing the understanding of foreign headquarter location choices, and by demonstrating the importance of historical context in international business research. We emphasize how the former colonial influence continues to confer advantages upon some countries, including the attraction of FDI.

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Historical ties between nations: How do they matter in cross-border mergers and acquisitions?

Cited by 18 publications

References 78 publications

Foreign Direct Investment to Africa: Is There a Colonial Legacy?

Foreign Direct Investment to Africa: Is There a Colonial Legacy?

The Employment Effect of Inward FDI in China: What Do We Learn from the History?

History Matters: Colonial-Based Connectivity and Foreign Headquarter Location Choice

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