Global Meets Local: Community, Political Ideology, and Chinese Cross-Border M&As in the U.S.
Channel: HKUST Institute for Emerging Market Studies (IEMS)
Date: 03/05/2023

Speaker: Danqing Wang (HKUST)

A growing body of research has investigated institutional-level factors at the national level in explaining the failure to complete announced cross-border M&As. In this study, we extend this research by employing a community-based lens and examining the political ideology of the local community where the target is headquartered. Drawing on recent research on the psychology of political ideology, we argue that M&A deals pursued by Chinese acquirers in the U.S. suffer lower likelihood of completion in conservative communities due to the negative attitudes and resistance caused by greater uncertainty and threats perceived by local constituents. We further argue that the negative effect of conservative political ideology on Chinese firms’ M&A completion is strengthened by the Chinese acquirer’s media exposure prior to the deal as well the economic stress that the community is experiencing.  

Details about this webinar can be found at https://iems.ust.hk/events/academic-seminar/2023/global-meets-local-community-political-ideology-and-chinese-cross-border-m-as-in-the-u.s.-by-danqing-wang