Friends, foes, or “frenemies”: Intercountry relations and cross‐border acquisitions
Journal: Global Strategy Journal
Year: 2022

Abstract Research Summary We draw on the political institutions approach and relational embeddedness perspective to advance a relational theory of policy risk. We argue that policy risk negatively affects acquisition completion, but the strength of the effect is dependent on home‐host country relations. Home‐host country relations underpin host governments' motivation to commit to policies and influence foreign acquirers' perceptions of the credibility of such commitments. Using longitudinal eve