TY - JOUR

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.

KW - internationalization

KW - multinationals

KW - outward foreign

KW - SCOPUS

KW - WOS

KW - SCOPUS

KW - WOS

UR - https://www.scopus.com/record/display.uri?eid=2-s2.0-84988014328&origin=resultslist

U2 - 10.1108/IJoEM-04-2016-0105

DO - 10.1108/IJoEM-04-2016-0105

M3 - Article

VL - 11

SP - 674

EP - 692

JO - International Journal of Emerging Markets

JF - International Journal of Emerging Markets

SN - 1746-8809

IS - 4

ER -