In CEOs we trust: When religion matters in cross-border acquisitions. The case of a multifaith country

Kwok, Diana W.P.; Meschi, Pierre‐Xavier; Bertrand, Olivier

doi:10.1016/j.ibusrev.2020.101705

Cited by 10 publications

(4 citation statements)

References 162 publications

(237 reference statements)

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“…it is related to how individuals perceive themselves in terms of their sense of belonging to specific groups of people (Tajfel and Turner, 1986). As recent evidence suggests, individuals’ social identity can affect market entry (Kwok et al , 2020).…”

Section: Literature Review and Hypothesesmentioning

confidence: 99%

When do ethnic networks help with foreign direct investment location?

Alcaráz

Salamanca

2022

RIBS

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Purpose The purpose of this paper is to identify how the cultural attributes of ethnic networks affect foreign direct investment (FDI) location. Design/methodology/approach The study tests on panel data the effect of ethnic networks in interaction with their member’s cultural attributes on FDI location. Findings Results show that ethnic networks whose members predominantly exhibit a human orientation do not affect FDI location. However, when performance orientation is the predominant cultural attribute of the members of an ethnic network, there is a positive and significant effect on FDI location. Practical implications Managers need to be aware that not all networks will be equally helpful in achieving particular goals. For instance, ethnic networks where the performance orientation is dominant among their members affect FDI location, unlike ethnic networks where human orientation is dominant. Therefore, decision-makers need to identify and align these two elements (networks and goals) to maximize outcomes. Originality/value This study contributes to the literature by suggesting that FDI location is affected by ethnic networks where performance orientation is dominant among the members, which is not the case when human orientation is dominant among the members of the ethnic networks.

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Section: Literature Review and Hypothesesmentioning

confidence: 99%

When do ethnic networks help with foreign direct investment location?

Alcaráz

Salamanca

2022

RIBS

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“…The results of the other variables of interest and interactions did not change. Third, although most studies on fractionalization look at ethnolinguistic fractionalization, religious diversification may also be relevant in the context of CBAs (e.g., Dow et al, 2016; Kwok, Meschi, & Bertrand, 2020). Therefore, we included religious diversity in our measure of fractionalization distance.…”

Section: Resultsmentioning

confidence: 99%

Institutional determinants of ownership stake in cross‐border acquisitions in Africa: The moderating role of geographic distance

Galdino

Ellis

Lamont

et al. 2022

Thunderbird Intl Bus Rev

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We look at how emerging markets' institutional features affect ownership stake in cross-border acquisitions (CBAs) within Africa. Particularly, we show that the presence of shared colonial history between the home and host country and the extent of fractionalization distance and formal institutional distance influence the acquiring firm's decision regarding its ownership stake in the target. Moreover, we show that geographic distance between the home and host country, by augmenting uncertainty faced by acquiring firms, moderates the relationship between these institutional features and ownership stake. We test our hypotheses in a sample of 341 intra-Africa CBAs from 2001 to 2016. Generally, we find that greater ex ante uncertainty and ex post costs increase ownership stake. Specifically, greater geographic distance strengthens the positive relationship between shared colonial history and ownership stake and reverses the negative relationship between formal institutional distance and ownership stake. As for fractionalization distance, the relationship is more nuanced and needs to be further studied. We contribute to advance research on south-south CBAs in general, particularly within Africa, as well as to extend hostage theory in foreign market entry strategies in and from emerging markets.

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“…Economic distance was measured by the Mahalanobis distance between home and host country in four factors -GDP per capita, inflation measured by GDP deflator, exports of goods and services as a percentage of GDP, and imports of goods and services as a percentage of GDP from the World Development Indicators database. While extant work also shows that similarities/distance with respect to language (Kedia & Reddy, 2016;Li & Sai, 2020), religion (Kwok, Meschi, & Bertrand, 2020), and politics (Li et al, 2019) influence CBA completion, we do not include them in our model, due to multicollinearity issues.…”

Section: Control Variablesmentioning

confidence: 99%

Learning from inbound foreign acquisitions for outbound expansion by emerging market MNEs

Tang

Luo

et al. 2022

J Int Bus Stud

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Although cross-border acquisitions (CBAs) are prevalent, many such acquisitions fail to complete. This challenge is even more profound for emerging market MNEs (EMNEs). Drawing upon the vicarious learning theory, we argue that EMNEs can learn from inbound foreign acquirers through the latter's demonstration, professional services firms, and employees. This learning mechanism enables EMNEs to better deal with the complexity and uncertainty in various stages of acquiring foreign firms, thus increasing the completion rate of their outbound CBAs. We also suggest that the effectiveness of vicarious learning is further enhanced by the relatedness between inbound and outbound CBAs. Our analysis of 3599 outbound CBAs from 27 emerging economies during 2000-2018 shows that prior inbound CBAs completed in an emerging economy have a positive effect on the completion likelihood of outbound CBAs conducted by EMNEs from this economy. This positive effect becomes even stronger when the percentage of (1) inbound CBAs served by the EMNE's financial advisors, (2) inbound foreign acquirers that are in the same industry as the EMNE, and (3) inbound foreign acquirers that are from the same country as a focal outbound CBA's target country, is larger. These findings offer new insights into the inbound-outbound acquisition links and the internationalization process of EMNEs.

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In CEOs we trust: When religion matters in cross-border acquisitions. The case of a multifaith country

Cited by 10 publications

References 162 publications

When do ethnic networks help with foreign direct investment location?

When do ethnic networks help with foreign direct investment location?

Institutional determinants of ownership stake in cross‐border acquisitions in Africa: The moderating role of geographic distance

Learning from inbound foreign acquisitions for outbound expansion by emerging market MNEs

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