The programming committee for the 77th Annual SAM International Business Conference is pleased to announce the acceptance of the presentation The Impacts of Political Risk on the Performances of Cross-border Acquisitions, authored by Tien Ho Cheng and Shao Chi Cheng from National Cheng Kung University.
Presentation Abstract: Nowadays, political risk is a rising challenge in our business environments. This study investigates the impacts of firm-level political risk on acquirers’ motivations and their long-term postacquisition performances. Using a sample of 1106 international acquisitions by US-listed firms during 2002-2018, we find that acquirers with different motivations have significantly different long-term operating and stock performances when facing high political risk. By contrast, there are no differences in the long-term performances of acquirers with different motivations under low political risk. These results provide strong implications for managers to proceed with cross-border M&As under different levels of political risk. Overall, we underscore the substantial influences of political risk on acquiring firms’ long-term performances.
Join us online to see this great paper and many more March 31 – April 2, 2022. For registration information visit www.samnational.org/conference.