Something left to lose? Network preservation as a motive for protectionist responses to foreign takeovers

Callaghan, Helen

doi:10.1080/09692290.2014.893246

Cited by 10 publications

(8 citation statements)

References 30 publications

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“…As a result, despite unprecedented increases in M&A IFDI in the UK in the 1990s and 2000s, the phenomenon of foreign takeovers lost political salience. As indicated in Figure 1, which reproduces the findings of an analysis of parliamentary speeches presented in Callaghan (2015), political debates about M&A IFDI almost entirely disappeared from parliamentary discussions in the 1990s, with the word "takeover" barely even being mentioned any longer. In short, inward FDI had become a political non-issue.…”

Section: A Blessing or A Curse? Inward Foreign Direct Investments In ...supporting

confidence: 81%

Economic Narratives and the Legitimacy of Foreign Direct Investments

Linsi

2022

PaG

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In the 1990s, the primary focus of the international investment regime shifted from the restriction and regulation towards the promotion and attraction of foreign companies. Dominant accounts in the international political economy literature emphasize the role of interests and institutions in explaining this policy shift but pay little attention to their legitimation. This article argues that transformations in dominant economic discourses—and in particular the rise of the competitiveness narrative—played an important role in granting legitimacy to this U-turn in international economic affairs. To test the argument, the article focuses on the impact of the differential changes in the portrayal of greenfield and mergers and acquisitions (M&A) inward foreign direct investments (IFDI) in economic discourses in the UK before and after the rise of the competitiveness narrative. In line with the theoretical argument, findings indicate that individuals who passed their early adulthood in a period in which the narrative of economic statism was still prevalent hold notably more skeptical views of M&A IFDI even though they are otherwise not more opposed to investments from abroad. A causal mediation analysis lends further empirical support to the argument.

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Section: A Blessing or A Curse? Inward Foreign Direct Investments In ...supporting

confidence: 81%

Economic Narratives and the Legitimacy of Foreign Direct Investments

Linsi

2022

PaG

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“…In later years, bids for three particularly stakeholder-oriented companies-Pilkington (1986), Rowntree (1987) and Cadbury (2010)-sparked unusually intense debates (Callaghan, 2015). In all three cases, managerial paternalism was advanced as a reason to mobilize against the bid (see Callaghan, 2015, p. 18)-albeit with decreasing success.…”

mentioning

confidence: 99%

Who cares about financialization? Self-reinforcing feedback, issue salience, and increasing acquiescence to market-enabling takeover rules

Callaghan

2015

Socio-Economic Review

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Financialization requires a regulatory framework that allows markets to emerge and expand. What explains growing political acquiescence to relevant market-enabling rules? The present article identifies feedback processes whereby such rules lock in over time. First, as markets expand, market proponents grow more numerous and develop increasing stakes. Second, potential challengers find it increasingly difficult to mobilize protest, because routinization reduces salience and because market exposure renders protesters more vulnerable. Third, potential challengers lose incentives to protest, because market exposure eliminates some non-market structures that inspire defensive action, and because 'constrain-thy-neighbor' dynamics encourage the further spread of market-enabling rules as a means of self-defense. The case of market-enabling takeover regulation in Britain since the 1950s illustrates how these processes gradually changed the preferences and resources of bankers, institutional investors, corporate managers and employees and thereby help explain why parliamentary interest in market-restraining counter-measures grew weaker over time.

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“…This responds to one of the central issues of the special issue-can financial markets provide patient capital? At present, studies have focused on private investors such as private equity firms or hedge funds or Anglo-American institutional investors (Goyer and Valdivielso 2014, Goyer and Kwan Jung 2011, O'Sullivan 2007, Callaghan 2015, Fioretos 2010, Culpepper 2005, Gospel, Pendleton, and Vitols 2014, Goyer 2006, Fichtner 2015.…”

Section: Previous Literature On Varieties Of Corporate Governance Fimentioning

confidence: 99%

“…Within wide-ranging debates about 'Varieties of Capitalism' (VoC), a key issue has been whether financial internationalisation and liberalisation undermine the supply of 'patient capital', which in coordinated market economies (CMEs) and mixed market economies (MMEs) has been a central element of 'insider' systems of corporate governance in which firms enjoy cooperative and close relationships with investors (O'Sullivan 2007, Callaghan 2015, Fioretos 2010, Culpepper 2005, Gospel, Pendleton, and Vitols 2014, Goyer 2006, Fichtner 2015. The literature has focused on private overseas capital, which is treated as being 'impatient' and often threatening to established 'insiders'.…”

Section: Introductionmentioning

confidence: 99%