IDEAS home Printed from https://ideas.repec.org/a/eee/iburev/v34y2025i6s0969593125001155.html
   My bibliography  Save this article

Effects of institutional (in)congruence between home and host countries on the ownership level of cross-border M&As

Author

Listed:
  • Hu, Yafei
  • Li, Yuanxu

Abstract

Institutional (in)congruence between home and host countries plays an important role in cross-border mergers and acquisitions (M&As). Drawing upon prior research on the diversity strand from an institutional economics perspective, we explore the (in)congruence effects of both formal and informal institutions between home and host countries on the ownership level of cross-border M&As. Using a sample of 19352 deals in Belt and Road Initiative (BRI) countries in 2008–2020, we find empirical support for congruence and incongruence effects for both formal and informal institutions. Our research contributes to the institutional economics literature by introducing a typology of formal institutional congruence, formal institutional incongruence, informal institutional congruence, and informal institutional incongruence. It also contributes to the international business literature by highlighting the critical roles that both formal and informal institutional congruence between home and host countries play in determining the ownership percentage of cross-border M&As.

Suggested Citation

  • Hu, Yafei & Li, Yuanxu, 2025. "Effects of institutional (in)congruence between home and host countries on the ownership level of cross-border M&As," International Business Review, Elsevier, vol. 34(6).
    • Handle: RePEc:eee:iburev:v:34:y:2025:i:6:s0969593125001155
    DOI: 10.1016/j.ibusrev.2025.102502
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0969593125001155
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ibusrev.2025.102502?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:iburev:v:34:y:2025:i:6:s0969593125001155. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/133/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.