Investment motives, ownership advantages and institutional distance: An examination of Russian cross-border acquisitions

Desislava Dikova, Andrei Panibratov, Anna Veselova

Research output

2 Citations (Scopus)

Abstract

We apply the OLI framework, first, to examine the motives of Russian cross-border (CB) M&A activity in the period 2007–2013 and, second, to analyze the ownership preferences of Russian multinationals abroad. We test our first set of models using panel data of 322 country/year observations and the second set of models using cross-sectional firm-level data of 318 M&A deals. Our analysis shows that traditional investment motives provide a limited explanation of what attracts or deters Russian acquirers abroad. We extend our base-model to include institutional distance and find that it plays a critical role on Russian CB M&A activity. As a second step, we employ state ownership as a specific type of institutional ownership advantage and discover that partial state ownership discourages Russian firms from pursuing full-ownership in CB M&As. Moreover, Russian multinationals benefit from internalization advantages (full M&A ownership) in tandem with location advantages derived from natural resource endowments.
Original languageEnglish
Number of pages13
JournalInternational Business Review
Early online date2019
DOIs
Publication statusE-pub ahead of print - 2019

Fingerprint

Ownership
Cross-border acquisitions
Ownership advantages
Cross-border
State ownership
Multinationals
Internalization
Endowments
Natural resources
Panel data
Firm-level data
Institutional ownership
Location advantage

Scopus subject areas

  • Business, Management and Accounting(all)

Cite this

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title = "Investment motives, ownership advantages and institutional distance: An examination of Russian cross-border acquisitions",
abstract = "We apply the OLI framework, first, to examine the motives of Russian cross-border (CB) M&A activity in the period 2007–2013 and, second, to analyze the ownership preferences of Russian multinationals abroad. We test our first set of models using panel data of 322 country/year observations and the second set of models using cross-sectional firm-level data of 318 M&A deals. Our analysis shows that traditional investment motives provide a limited explanation of what attracts or deters Russian acquirers abroad. We extend our base-model to include institutional distance and find that it plays a critical role on Russian CB M&A activity. As a second step, we employ state ownership as a specific type of institutional ownership advantage and discover that partial state ownership discourages Russian firms from pursuing full-ownership in CB M&As. Moreover, Russian multinationals benefit from internalization advantages (full M&A ownership) in tandem with location advantages derived from natural resource endowments.",
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author = "Desislava Dikova and Andrei Panibratov and Anna Veselova",
note = "Dikova, D. Investment motives, ownership advantages and institutional distance : An examination of Russian cross-border acquisitions / D. Dikova, A. Panibratov, A. Veselova // International Business Review. - 2019. – Volume N/A. – P. N/A.",
year = "2019",
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language = "English",
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TY - JOUR

T1 - Investment motives, ownership advantages and institutional distance

T2 - An examination of Russian cross-border acquisitions

AU - Dikova, Desislava

AU - Panibratov, Andrei

AU - Veselova, Anna

N1 - Dikova, D. Investment motives, ownership advantages and institutional distance : An examination of Russian cross-border acquisitions / D. Dikova, A. Panibratov, A. Veselova // International Business Review. - 2019. – Volume N/A. – P. N/A.

PY - 2019

Y1 - 2019

N2 - We apply the OLI framework, first, to examine the motives of Russian cross-border (CB) M&A activity in the period 2007–2013 and, second, to analyze the ownership preferences of Russian multinationals abroad. We test our first set of models using panel data of 322 country/year observations and the second set of models using cross-sectional firm-level data of 318 M&A deals. Our analysis shows that traditional investment motives provide a limited explanation of what attracts or deters Russian acquirers abroad. We extend our base-model to include institutional distance and find that it plays a critical role on Russian CB M&A activity. As a second step, we employ state ownership as a specific type of institutional ownership advantage and discover that partial state ownership discourages Russian firms from pursuing full-ownership in CB M&As. Moreover, Russian multinationals benefit from internalization advantages (full M&A ownership) in tandem with location advantages derived from natural resource endowments.

AB - We apply the OLI framework, first, to examine the motives of Russian cross-border (CB) M&A activity in the period 2007–2013 and, second, to analyze the ownership preferences of Russian multinationals abroad. We test our first set of models using panel data of 322 country/year observations and the second set of models using cross-sectional firm-level data of 318 M&A deals. Our analysis shows that traditional investment motives provide a limited explanation of what attracts or deters Russian acquirers abroad. We extend our base-model to include institutional distance and find that it plays a critical role on Russian CB M&A activity. As a second step, we employ state ownership as a specific type of institutional ownership advantage and discover that partial state ownership discourages Russian firms from pursuing full-ownership in CB M&As. Moreover, Russian multinationals benefit from internalization advantages (full M&A ownership) in tandem with location advantages derived from natural resource endowments.

KW - internationalization

KW - multinationals

KW - outward foreign

KW - SCOPUS

KW - SCOPUS

U2 - 10.1016/j.ibusrev.2018.12.007

DO - 10.1016/j.ibusrev.2018.12.007

M3 - Article

JO - International Business Review

JF - International Business Review

SN - 0969-5931

ER -