The impact of country-dyadic military conflicts on market reaction to cross-border acquisitions
| Autor: | Asli M. Arikan, Oded Shenkar, Chengguang Li, Ilgaz Arikan |
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| Rok vydání: | 2019 |
| Předmět: |
International relations
Economics and Econometrics Pride Strategy and Management media_common.quotation_subject 05 social sciences Cultural similarity Market reaction Sample (statistics) International economics International business Colonialism General Business Management and Accounting Work (electrical) Management of Technology and Innovation 0502 economics and business Economics 050211 marketing Business and International Management health care economics and organizations 050203 business & management media_common |
| Zdroj: | Journal of International Business Studies. 51:299-325 |
| ISSN: | 1478-6990 0047-2506 |
| Popis: | Our work examines the impact of country-dyadic military conflicts on market reaction to cross-border acquisitions (CBAs). Building on intergroup relations research, we theorize that country-dyadic military conflicts, weighted by their severity, trigger intergroup conflicts between the merging firms and, in so doing, hamper market reaction to CBA. Drawing on a sample that comprises 7321 CBAs between 1988 and 2011, we find that country-dyadic military conflicts reduce acquirer returns following CBA announcements and that cultural similarity between acquirer and target countries weakens the relationship between military conflicts and market reaction to CBA while colonial ties between the countries, the target country’s national pride, and the target’s firm size reinforce the relationship. Our study contributes to an emerging body of work that examines the role of international politics/relations in international business. |
| Databáze: | OpenAIRE |
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