Host country distance and unrealized cross-border merger and acquisition deals: perspectives from China and Russia

Andrei Panibratov; Liubov Ermolaeva; Jane Menzies; Justin Paul; Rohail Hassan

doi:10.1108/MBR-10-2023-0163

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Host country distance and unrealized cross-border merger and acquisition deals: perspectives from China and Russia

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Host country distance and unrealized cross-border merger and acquisition deals: perspectives from China and Russia

Andrei Panibratov, Liubov Ermolaeva, Jane Menzies, Justin Paul and Rohail Hassan

Multinational Business Review, Vol.Advanced access

06-Mar-2026

DOI: https://doi.org/10.1108/MBR-10-2023-0163

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Abstract

institutional distance

corruption

economic freedom

cultural distance

cross-border

mergers and acquisitions

China

Russia

unrealized deals

Purpose The purpose of this study is to examine how institutional distance impacts unrealized cross-border mergers and acquisitions (CBMAs) deals of firms from China and Russia after they have been rumored. Prior research on CBMAs has acknowledged that only a small percentage of all evaluated target firms are acquired. Using institutional distance theory, the authors contribute to the research literature by examining the institutional distance relating to the regulative, normative and cognitive institutional distance between China and Russia and their respective host countries to identify the determinants of unrealized CBMA deals after they have been rumored. Design/methodology/approach The authors test hypotheses using data on CBMA rumors by examining a sample of CBMA deals by Chinese and Russian multinational enterprises from January 2003 to December 2019. Findings For Russia and China, rumored deals are less likely to remain unrealized in host countries with higher business and investment freedom than in the acquiring country (China or Russia). Rumored deals are less likely to be unrealized in host countries with lower corruption levels than in the acquiring country. Greater cultural distance between the home and host countries increases the likelihood of unrealized deals. Originality/value The authors make a unique contribution to the literature, as no prior studies have investigated the influence of institutional distance on unrealized rumored CBMA deals, particularly in the comparison of Chinese and Russian multinational enterprises.

Details

Title: Host country distance and unrealized cross-border merger and acquisition deals: perspectives from China and Russia
Authors: Andrei Panibratov - Pôle Léonard de Vinci
Liubov Ermolaeva - Saint Petersburg University of Management and Economics
Jane Menzies (Corresponding Author) - University of the Sunshine Coast
Justin Paul - University of Puerto Rico System
Rohail Hassan - Northern University of Malaysia
Publication details: Multinational Business Review, Vol.Advanced access
Publisher: Emerald Publishing Limited
DOI: 10.1108/MBR-10-2023-0163
ISSN: 2054-1686
Copyright note: © 2026 Andrei Panibratov, Liubov Ermolaeva, Jane Menzies, Justin Paul and Rohail Hassan. Published by Emerald Publishing Limited. This article is published under the Creative Commons Attribution (CC BY 4.0) licence. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this licence maybe seen at Link to the terms of the CC BY 4.0 licenceLink to the terms of the CC BY 4.0 licence.
Organisation Unit: School of Business and Creative Industries; Indigenous and Transcultural Research Centre
Language: English
Record Identifier: 991216245102621
Output Type: Journal article

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