Ownership in cross-border acquisitions and the role of government support

• Autor(a) principal: Pinto, Cláudia Frias
• Data de Publicação: 2017
• Outros Autores: Ferreira, Manuel Portugal, Falaster, Christian, Fleury, Maria Tereza Leme, Fleury, Afonso
• Tipo de documento: Artigo
• Idioma: eng
• Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
• Texto Completo: http://hdl.handle.net/10400.8/6030
• topic: Cross-border acquisition; Ownership; Institutional distance; Government support; Knowledge in CBAs; Multilatinas

We examine the role of government support on the ownership choices by multilatinas in cross-border acquisitions, both directly and in moderating the relationship between institutional distance and knowledge access. We argue that the pro-market reforms and three mechanisms of government support – financing, stock participation, and political ties – can result in higher levels of ownership negotiated by firms, under conditions of greater institutional distance and knowledge access. Our findings contribute to extend the institution-based view by exploring how the unique institutional characteristics of Latin American countries, and especially different types of government support, influence foreign ownership strategies of multilatinas.