Immigration Fear Induced Populism and Cross-Border Acquisitions

54 Pages Posted: 7 Jul 2020 Last revised: 24 Sep 2021

See all articles by Sulaiman Aldhawyan

Sulaiman Aldhawyan

Saudi Electronic University

Krishna Paudyal

University of Strathclyde

Sandeep Rao

Dublin City University Business School

Chandra Thapa

University of Strathclyde

Date Written: June 24, 2020

Abstract

We examine whether immigration-related fear sentiments (IFS), that escalate support for populist ideologies and policies, affect the flow of inbound cross-border acquisitions (CBA). Economic arguments postulate that IFS-induced populist policies generate economic uncertainty and significant associated deadweight costs for potential international investors. Consistent with this conjecture our results show that intensification of IFS leads to a significant decline in inbound CBA activities (number of CBA, lower likelihood of receiving acquisition bids and deal completion) in major developed economies. The results also indicate that the inverse nexus between IFS and inbound CBA is stronger if the State is run by political parties holding anti-immigrant populist views and, also for the labor-intensive industries.

Keywords: Immigration Fear Sentiments, Populism, Cross-Border Acquisitions, M&A, Mergers and Acquisitions, Policy Uncertainty, Protectionist Policies, Labor Intensity

JEL Classification: F21, F22, F52, G34, G38

Suggested Citation

Aldhawyan, Sulaiman and Paudyal, Krishna and Rao, Sandeep and Thapa, Chandra, Immigration Fear Induced Populism and Cross-Border Acquisitions (June 24, 2020). Available at SSRN: https://ssrn.com/abstract=3635023 or http://dx.doi.org/10.2139/ssrn.3635023

Sulaiman Aldhawyan

Saudi Electronic University ( email )

Riyadh
Saudi Arabia

Krishna Paudyal

University of Strathclyde ( email )

Curran Building
100 Cathedral Street
Glasgow, G4 0LN
United Kingdom

Sandeep Rao (Contact Author)

Dublin City University Business School ( email )

Glasnevin Campus
Dublin 9
Ireland

HOME PAGE: http://www.sandeepkrao.com

Chandra Thapa

University of Strathclyde ( email )

16 Richmond Street
Glasgow 1XQ, Scotland G1 1XQ
United Kingdom

HOME PAGE: http://https://www.strath.ac.uk/staff/thapachandradr/

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
38
Abstract Views
321
PlumX Metrics