Palestrante: Olivier Bertrand (SKEMA Business School)
We investigate the relevance of political affinity between countries for a firm’s bidding strategy in cross-border acquisitions. We argue that it affects the bargaining position that foreign acquirers anticipate to have in the negotiations with domestic target firms because it reduces the extent of political help from the domestic government a target firm can expect to rely on during the acquisition process. We find strong evidence that political affinity, as revealed by UN voting patterns, leads to lower initial acquisition premiums and influences other bidding choices. Supplementary analyses identify political contingency factors and show that shareholder expectations are also positively related to political affinity. This research contributes to the small, but growing literature on the implications of international relations for corporate business transactions.
Data: 13/12/2013 (sexta-feira)
Sala 203 – 2º andar