The joint effect of investment motives and institutional context on Russian international acquisitions

Desislava Dikova, Andrei Panibratov, Anna Veselova, Lyubov Ermolaeva

Research output

11 Citations (Scopus)

Abstract

Purpose: The purpose of this paper is to advance knowledge about factors that influence the location of Russian foreign direct investments. In particular, it focusses on the role of institutional distance (represented by corruption perception distance, political distance and cultural distance) as a moderator of the relationships between traditional investment motives and the number of M&A deals made by Russian companies in a specific country. Design/methodology/approach: The analysis is conducted on panel data of Russian cross-border M&As launched in 46 countries during the period 2007-2013. The final data set includes 322 observations. Due to the nature of dependent variable and the results of pre-tests, negative binomial regression is used in the main analysis. Findings: The key finding of the study reveals the importance of institutional distance, in particular, the moderating effect of different dimensions of institutional distance on the relationships between internationalization motives and the number of Russian M&As. Corruption, political and cultural differences show different effects in terms of both direction and strength, but all three were found to be significant. Research limitations/implications: The major concern stems from the type of secondary data used in the paper. This indicates the necessity to improve data collection methods which could allow for better transparency of Russian foreign investments, would facilitate more sophisticated research and probably more accurate business forecasts. Originality/value: By conducting a systematic examination of Russian cross-border M&As the authors contribute to the literature on emerging markets firms by addressing the important yet under-researched domain of Russian foreign direct investments. Building on the macroeconomic and institutional logic proposed in this study, future research on Russian cross-border activities could add to the understanding by providing more generalizable and critical evidence. The study provides a point of departure from prior studies on Russian outward FDI which the authors hope to inspire future research to further analyze the drivers of Russian M&As and foreign investments in general.
Original languageEnglish
Pages (from-to)674-692
Number of pages19
JournalInternational Journal of Emerging Markets
Volume11
Issue number4
DOIs
Publication statusPublished - 2016

Fingerprint

Institutional context
International acquisitions
Cross-border
Foreign investment
Corruption
Foreign direct investment
Data collection
Secondary data
Cultural distance
Transparency
Panel data
Emerging market firms
Moderator
Internationalization
Pre-test
Macroeconomics
Cultural differences
Institutional logics
Design methodology
Moderating effect

Scopus subject areas

  • Business, Management and Accounting(all)

Cite this

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title = "The joint effect of investment motives and institutional context on Russian international acquisitions",
abstract = "Purpose: The purpose of this paper is to advance knowledge about factors that influence the location of Russian foreign direct investments. In particular, it focusses on the role of institutional distance (represented by corruption perception distance, political distance and cultural distance) as a moderator of the relationships between traditional investment motives and the number of M&A deals made by Russian companies in a specific country. Design/methodology/approach: The analysis is conducted on panel data of Russian cross-border M&As launched in 46 countries during the period 2007-2013. The final data set includes 322 observations. Due to the nature of dependent variable and the results of pre-tests, negative binomial regression is used in the main analysis. Findings: The key finding of the study reveals the importance of institutional distance, in particular, the moderating effect of different dimensions of institutional distance on the relationships between internationalization motives and the number of Russian M&As. Corruption, political and cultural differences show different effects in terms of both direction and strength, but all three were found to be significant. Research limitations/implications: The major concern stems from the type of secondary data used in the paper. This indicates the necessity to improve data collection methods which could allow for better transparency of Russian foreign investments, would facilitate more sophisticated research and probably more accurate business forecasts. Originality/value: By conducting a systematic examination of Russian cross-border M&As the authors contribute to the literature on emerging markets firms by addressing the important yet under-researched domain of Russian foreign direct investments. Building on the macroeconomic and institutional logic proposed in this study, future research on Russian cross-border activities could add to the understanding by providing more generalizable and critical evidence. The study provides a point of departure from prior studies on Russian outward FDI which the authors hope to inspire future research to further analyze the drivers of Russian M&As and foreign investments in general.",
keywords = "internationalization, multinationals, outward foreign, SCOPUS, WOS, SCOPUS, WOS",
author = "Desislava Dikova and Andrei Panibratov and Anna Veselova and Lyubov Ermolaeva",
note = "The joint effect of investment motives and institutional context on Russian international acquisitions / D. Dikova, A. Panibratov, A. Veselova, L. Ermolaeva // International Journal of Emerging Markets. – 2016. - Volume 11, Issue 4. – P. 674-692 .",
year = "2016",
doi = "10.1108/IJoEM-04-2016-0105",
language = "English",
volume = "11",
pages = "674--692",
journal = "International Journal of Emerging Markets",
issn = "1746-8809",
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T1 - The joint effect of investment motives and institutional context on Russian international acquisitions

AU - Dikova, Desislava

AU - Panibratov, Andrei

AU - Veselova, Anna

AU - Ermolaeva, Lyubov

N1 - The joint effect of investment motives and institutional context on Russian international acquisitions / D. Dikova, A. Panibratov, A. Veselova, L. Ermolaeva // International Journal of Emerging Markets. – 2016. - Volume 11, Issue 4. – P. 674-692 .

PY - 2016

Y1 - 2016

N2 - Purpose: The purpose of this paper is to advance knowledge about factors that influence the location of Russian foreign direct investments. In particular, it focusses on the role of institutional distance (represented by corruption perception distance, political distance and cultural distance) as a moderator of the relationships between traditional investment motives and the number of M&A deals made by Russian companies in a specific country. Design/methodology/approach: The analysis is conducted on panel data of Russian cross-border M&As launched in 46 countries during the period 2007-2013. The final data set includes 322 observations. Due to the nature of dependent variable and the results of pre-tests, negative binomial regression is used in the main analysis. Findings: The key finding of the study reveals the importance of institutional distance, in particular, the moderating effect of different dimensions of institutional distance on the relationships between internationalization motives and the number of Russian M&As. Corruption, political and cultural differences show different effects in terms of both direction and strength, but all three were found to be significant. Research limitations/implications: The major concern stems from the type of secondary data used in the paper. This indicates the necessity to improve data collection methods which could allow for better transparency of Russian foreign investments, would facilitate more sophisticated research and probably more accurate business forecasts. Originality/value: By conducting a systematic examination of Russian cross-border M&As the authors contribute to the literature on emerging markets firms by addressing the important yet under-researched domain of Russian foreign direct investments. Building on the macroeconomic and institutional logic proposed in this study, future research on Russian cross-border activities could add to the understanding by providing more generalizable and critical evidence. The study provides a point of departure from prior studies on Russian outward FDI which the authors hope to inspire future research to further analyze the drivers of Russian M&As and foreign investments in general.

AB - Purpose: The purpose of this paper is to advance knowledge about factors that influence the location of Russian foreign direct investments. In particular, it focusses on the role of institutional distance (represented by corruption perception distance, political distance and cultural distance) as a moderator of the relationships between traditional investment motives and the number of M&A deals made by Russian companies in a specific country. Design/methodology/approach: The analysis is conducted on panel data of Russian cross-border M&As launched in 46 countries during the period 2007-2013. The final data set includes 322 observations. Due to the nature of dependent variable and the results of pre-tests, negative binomial regression is used in the main analysis. Findings: The key finding of the study reveals the importance of institutional distance, in particular, the moderating effect of different dimensions of institutional distance on the relationships between internationalization motives and the number of Russian M&As. Corruption, political and cultural differences show different effects in terms of both direction and strength, but all three were found to be significant. Research limitations/implications: The major concern stems from the type of secondary data used in the paper. This indicates the necessity to improve data collection methods which could allow for better transparency of Russian foreign investments, would facilitate more sophisticated research and probably more accurate business forecasts. Originality/value: By conducting a systematic examination of Russian cross-border M&As the authors contribute to the literature on emerging markets firms by addressing the important yet under-researched domain of Russian foreign direct investments. Building on the macroeconomic and institutional logic proposed in this study, future research on Russian cross-border activities could add to the understanding by providing more generalizable and critical evidence. The study provides a point of departure from prior studies on Russian outward FDI which the authors hope to inspire future research to further analyze the drivers of Russian M&As and foreign investments in general.

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KW - SCOPUS

KW - WOS

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DO - 10.1108/IJoEM-04-2016-0105

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EP - 692

JO - International Journal of Emerging Markets

JF - International Journal of Emerging Markets

SN - 1746-8809

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ER -