Ethnic Polarization and Ownership Decision in Cross‐Border Acquisitions: The Case of Emerging Market Multinational Enterprises
研究了目标国民族极化对新兴市场跨国企业跨境收购中股权所有权的影响，发现负相关关系，且受目标国民主水平、收购国民族极化和收购方当地经验调节。
Abstract Ethnic issues have been creating complex sociopolitical realities and grand challenges for economic activities in many countries, yet much less is known about their micro‐level effects on international business. This study explores the impact of ethnic polarization in target countries on equity ownership in cross‐border acquisitions (CBAs) by emerging market multinational enterprises (EMNEs). Drawing upon real options theory (ROT) and the concept of uncertainty, we construct a theoretical framework to investigate this impact and explore how the impact varies based on situational conditions. By analysing data on country‐level ethnic polarization and CBAs by EMNEs from 23 acquirer countries in 107 target countries during 1996–2020, we found evidence of a negative relationship between ethnic polarization in the target countries and equity ownership, conditional on the levels of democracy in target countries, the degrees of ethnic polarization in acquirer countries and acquirers’ local experiences. Managers in EMNEs should strategically assess equity ownership levels by considering these connections to mitigate risks and capitalize on opportunities in CBAs.