Democracy, Institutionalization, and Corporate Alliances

John Conybeare and Dong-Hun Kim
Additional contact information
John Conybeare: Department of Political Science, University of Iowa, Iowa City, john-conybeare@uiowa.edu
Dong-Hun Kim: Department of Political Science and International Relations, Korea University, Seoul, South Korea

Journal of Conflict Resolution, 2010, vol. 54, issue 5, 715-744

Abstract: The authors bring together and extend three strands of existing research: the propensity of democracies to ally with each other, the effects of alliances being institutionalized, and the causal impact of democracy in promoting investment. This literature is applied to corporate alliances, predicting the probability that announced alliance contracts will be completed by the participants. The authors find that democratic political regimes generate rules that create corporate shareholder democracy and that the latter promotes the institutionalization of corporate alliances. Corporate democracy and alliance institutionalization will both, controlling for transaction costs, increase the probability that corporate alliances will be completed. The findings suggest a positive association among democratic corporate governance, the willingness of corporate alliance partners to accept institutionalized ties, and the creation of an environment conducive to commercial investment commitments through alliances. Overall, corporations appear to respond to some of the same alliance incentives as sovereign states.

Keywords: alliances; corporations; democracy; institutionalization; transaction costs (search for similar items in EconPapers)
Date: 2010
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://journals.sagepub.com/doi/10.1177/0022002710364127 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sae:jocore:v:54:y:2010:i:5:p:715-744

DOI: 10.1177/0022002710364127

Access Statistics for this article

More articles in Journal of Conflict Resolution from Peace Science Society (International)
Bibliographic data for series maintained by SAGE Publications ().