Abstract
This study examines the influence of acquiring firm CEOs' psychological attributes on the geographic distance of target firms in cross-border acquisitions. Drawing on the regulatory focus theory, we argue that CEOs with a higher dispositional prevention focus are more vigilant and loss-aversive, avoiding target firms at a greater geographic distance in cross-border acquisitions. Furthermore, building on the concept of regulatory misfit, we examine the moderating effect of acquiring firm CEOs' context-specific experience and the munificence of acquiring firms' industries in priming the dispositional prevention focus. In a sample of 218 cross-border acquisitions by public firms from the United Kingdom from 2006 to 2014, we find support for our hypotheses. This study emphasizes the role of micro-foundations in cross-border acquisitions and deepens the understanding of cross-border acquisition location choice decisions.
| Original language | English |
|---|---|
| Article number | 101115 |
| Journal | Journal of International Management |
| Volume | 30 |
| Issue number | 1 |
| Early online date | 20 Dec 2023 |
| DOIs | |
| Publication status | Published - Feb 2024 |
Keywords
- CEO
- cross-border mergers and acquisitions
- geographic distance
- location choice
- prevention focus
- regulatory focus theory
ASJC Scopus subject areas
- Business and International Management
- Finance
- Strategy and Management