Li, C. and Reuer, J. J. (2021) The impact of corruption on market reactions to international strategic alliances. Journal of International Business Studies . doi:10.1057/s41267-021-00404-7 (In Press)

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Abstract

Drawing on institutional theory, we argue that the level of corruption in an alliance partner’s country negatively affects the market reaction to a focal firm’s international strategic alliance announcement, as corruption creates uncertainty regarding the behavior of the partner firm. We further propose that anti-bribery laws in the focal firm’s home country strengthen the negative relation between corruption and market reactions, while the focal firm’s prior alliance experience in more corrupt countries and the level of corruption in its home country weaken the relationship. Analyses of over one thousand international strategic alliance announcements involving firms from 30 countries furnish evidence largely consistent with our theory. The findings indicate the importance of corruption as a facet of the institutional environment that shapes firms’ value creation opportunities and risks in international alliances.

Item Type:	Journal Article
Subjects:	H Social Sciences > HB Economic Theory H Social Sciences > HD Industries. Land use. Labor H Social Sciences > HG Finance
Divisions:	Faculty of Social Sciences > Warwick Business School > Strategy & International Business Faculty of Social Sciences > Warwick Business School
Library of Congress Subject Headings (LCSH):	Strategic alliances (Business) -- International cooperation, Corruption -- Economic aspects, Value -- Economic aspects
Journal or Publication Title:	Journal of International Business Studies
Publisher:	Palgrave Macmillan Ltd.
ISSN:	0047-2506
Official Date:	2021
Dates:	Date Event 2021 Published 19 February 2021 Available 16 December 2020 Accepted
DOI:	10.1057/s41267-021-00404-7
Status:	Peer Reviewed
Publication Status:	In Press
Publisher Statement:	This is a post-peer-review, pre-copyedit version of an article published in Journal of International Business Studies. The final authenticated version is available online at: http://dx.doi.org/10.1057/s41267-021-00404-7
Access rights to Published version:	Restricted or Subscription Access

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