Closing the deal faster: the role of institutions and government involvement in cross-border M&A completions in Brazil

Cai, Y., Kamasak, R. ORCID: https://orcid.org/0000-0001-8768-3569 and Gorener, R. (2024) Closing the deal faster: the role of institutions and government involvement in cross-border M&A completions in Brazil. Critical Perspectives on International Business. ISSN 1742-2043 doi: 10.1108/cpoib-08-2024-0088

Abstract/Summary

Drawing on an integrative lens of the institutional theory and resource-based view, we investigate the effect of institutional distance, institutional quality, and government involvement on the duration of cross-border M&A deals in Brazil between 2000 and 2015. The larger institutional distance does not extend the duration of M&A deals for emerging home country (Brazil) and developed host country pairs. However, the larger institutional distance between emerging home (Brazil) and emerging host country pairs leads to longer M&A deal durations. We show a positive association between institutional quality and M&A deal duration in developed host countries but not emerging host countries. While no association between government involvement and M&A deal durations is reported for developed host country settings, we find that government involvement extends the deals' duration in emerging host countries. Thus, government involvement does not contribute as a firm-level asset in helping Brazilian acquirers shorten their M&A deal durations. We explain our findings with the importance of institutional quality and complex or sluggish bureaucratic structure, politics, or corruption that might emerge as transaction costs in emerging country contexts.

Item Type	Article
URI	https://reading-clone.eprints-hosting.org/id/eprint/119553
Identification Number/DOI	10.1108/cpoib-08-2024-0088
Refereed	Yes
Divisions	Henley Business School > Leadership, Organisations, Behaviour and Reputation
Uncontrolled Keywords	Deal duration, mergers and acquisitions, institutional distance, institutional quality, government involvement, institutional theory, resource-based view, emerging countries, Brazil
Publisher	Emerald
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