Gulf Cooperation Council Cross-Border M&A: Institutional Determinants of Target Nation Selection

Michael Dowling () and Dieter Vanwalleghem
Additional contact information
Michael Dowling: ESC Rennes School of Business - ESC [Rennes] - ESC Rennes School of Business
Dieter Vanwalleghem: ESC [Rennes] - ESC Rennes School of Business

Post-Print from HAL

Abstract: We provide a first formal study of target nation selection by Gulf Cooperation Council (GCC) firms in the Persian Gulf seeking to internationalize. We initially show the economic drivers behind target nation selection and then demonstrate the additional influence of a target nation's formal and informal institutions. Effective formal institutions (good governance) and close informal institutions (cultural similarity) in a target nation are preferred. We further examine interactions between formal and informal institutions to demonstrate that these institutional influences act as substitutes to each other in determining the attractiveness of potential target nation when we consider a generalized culture measure, but as complements when we consider a GCC-specific cultural measure. This research therefore provides a starting point for understanding the myriad of drivers involved in the rapidly growing pattern of GCC firms seeking to expand by acquiring overseas.

Keywords: Institutions; Cross Border M&A; Gulf Cooperation Council; Cultural Similarity; Governance (search for similar items in EconPapers)
Date: 2018
References: Add references at CitEc
Citations: View citations in EconPapers (4)

Published in Research in International Business and Finance, 2018, 46, pp.471-489. ⟨10.1016/j.ribaf.2018.06.004⟩

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:hal:journl:hal-01953981

DOI: 10.1016/j.ribaf.2018.06.004

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().