3 SPRING 2023 NO.74 / THOUGHT LEADERSHIP BRIEF 0.2 0 -0.2 -0.4 0.2 0.4 0.6 0.8 1 County Conservative Ideology Difference between Cross-Border Acquisition Completion Likelihood 0.4 0.2 0 -0.2 -0.4 County Conservative Ideology Difference in hte Cross-Border Acquisition Completion Likelihood 0.2 0.4 0.6 0.8 1 Figure 2. Moderating Effect of the Positive Media Reports on the Relationship between County Conservative Ideology and the Completion Probability of Cross-Border Acquisitions. The Y-axis Indicate the Difference of the Completion Probability for More Positively Reported Acquirer and Less Positively Reported Acquirer. Figure 3. Moderating Effect of the Economic Distress on the Relationship between County Conservative Ideology and the Completion Probability of Cross-Border Acquisitions. The Y-axis Indicate the Difference of the Completion Probability for High Distress and the Low Distress County. Figure 1. Moderating Effect of the Media Coverage on the Relationship Between County Conservative Ideology and the Completion Probability of Cross-Border Acquisitions. The Y-axis Indicate the Difference of the Completion Probability for High Media Coverage Acquirer and the Low Media Coverage Acquirer. New York States. Our results suggested that in the post-election years, the acquisitions by Chinese firms in the State of Arizona are 10.9% less likely to complete than those acquisitions in New York States. We further searched the acquiring firm’s name in the year previous to the focal deal in the FACTIVA Global News Database. And we find that the negative effect of the conservative ideology on deal completion is enlarged if the acquiring Chinese firms received more media coverage. However, the negative effect is attenuated if such firms received more positive media reports. We measured county economic distress using the county unemployment rate in the focal year and also find the negative effect is more magnificent under a higher unemployment level. IMPLICATIONS This study uses a community-based lens to examine the effect of political ideologies in host country communities on cross-border M&A deal completion. Drawing on recent research in psychology of political ideology, we argue that M&A deals pursued by Chinese acquirers in the U.S. suffer a lower completion rate in conservative communities due to local stakeholders’ negative attitudes and resistance caused by perceived uncertainty and threats. 0.2 0 -0.2 -0.4 County Conversative Ideology Difference in Cross-Border Acquisition Completion Likelihood 0.2 0.4 0.6 0.8 1
RkJQdWJsaXNoZXIy NDk5Njg=