On the Role of the Political Regime in the Choice between International Acquisitions and Joint Ventures when Entering an Emerging Market: Evidence from Russia

Abstract

We focus on the determinants of the choice between international joint ventures and acquisitions when entering emerging countries. We empirically explore if subregional variation in the political regime matters for the entry mode decision of foreign investors. Based on an analysis of 151 foreign entries into Russia for the period 2002–2008, our results indicate that the entry mode choice is linked to regional variation in the level of democracy. Foreign entries in more democratic regions are more likely to take the form of joint ventures, and vice versa.

Citation

Bertrand, O., Betschinger, M.-A., Bertschy, N. and Shidlauskas, R. (2016), "On the Role of the Political Regime in the Choice between International Acquisitions and Joint Ventures when Entering an Emerging Market: Evidence from Russia", Advances in Mergers and Acquisitions (Advances in Mergers and Acquisitions, Vol. 15), Emerald Group Publishing Limited, Leeds, pp. 37-52. https://doi.org/10.1108/S1479-361X20160000015003