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Antitrust holdup source, cross‐national institutional variation, and corporate political strategy implications for domestic mergers in a global context
Author(s) -
Clougherty Joseph A.
Publication year - 2005
Publication title -
strategic management journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 11.035
H-Index - 286
eISSN - 1097-0266
pISSN - 0143-2095
DOI - 10.1002/smj.473
Subject(s) - politics , context (archaeology) , yield (engineering) , economics , mergers and acquisitions , business , industrial organization , political science , law , finance , paleontology , materials science , metallurgy , biology
Managers are increasingly uncertain over the source (home nation or foreign nation) of antitrust holdup for domestic mergers with significant international implications. I propose a conceptual framework that predicts the source of antitrust holdup for domestic mergers. I find an industry's global competitiveness to be the primary driver behind holdup source. Further, I factor institutional conditions to yield more precise predictions tailored to the cross‐national environment for antitrust policy. Exploratory empirical tests based on the merger policies of 27 antitrust jurisdictions over the 1992–2000 period provide support for baseline predictions. Finally, I generate prescriptive propositions that yield implications for effective political strategies. Copyright © 2005 John Wiley & Sons, Ltd.