Cross-border alliances and risk management

• 成果类型: Article
• 署名作者: Bodnaruk, Andriy; Manconi, Alberto; Massa, Massimo
• 署名单位: University of Illinois System; University of Illinois Chicago; University of Illinois Chicago Hospital; Tilburg University; Tilburg University; INSEAD Business School
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/j.jinteco.2016.05.002
• 发表日期: 2016
• 页码: 22-49
• 关键词: Cross-border alliances and M&As; International growth; governance; Partner risk; State expropriation

摘要

We study U.S. firms' foreign expansion choices, and investigate alliances as risk management devices used to mitigate partner risk. Finns venturing abroad are constrained by the availability of potential partners. One set of partners are foreign companies the firm shares the venture with (direct partners). The second set of partners is the institutions/government of the host country (indirect partners). Firms are more likely to choose alliances (over M&As) when indirect (direct) partner risk is high (low). The sensitivity to direct partner risk varies in the cross-section, and is weakened by financial constraints and greater ease of monitoring foreign partners. (C) 2016 Elsevier B.V. All rights reserved.