High-quality implementation of cross-border mergers and acquisitions (cross-border M&As) is an important pathway for emerging-market multinational enterprises (EMNEs) to enhance their international competitiveness. However, in comparison to developed countries, cross-border M&As by EMNEs are often prohibited by the liability of origin caused by negative political coverage. How and why negative political coverage affect the completion of cross-border M&As by EMNEs? What are the contextual constraints that moderate the impact of negative political coverage on cross-border M&As completion? Based on the “liability of origin” theory, this paper addresses these questions using data from the Zephyr database on cross-border M&As by EMNEs in the United States from 2016 to June 2021 and employing a logit model for estimation. The research findings are as follows: (1) Negative political coverage leads to negative perceptions of emerging market countries by host country stakeholders, creating the liability of origin and stigmatizing the corporate nationality, thereby reducing the success rate of cross-border M&As by EMNEs. (2) Increasing geographical distance leads to information asymmetry, reinforcing the negative impact of negative political coverage on the completion of cross-border M&As by EMNEs. (3) Relevant mergers and acquisitions exacerbate the negative effect of negative political coverage on the success rate of cross-border M&As by EMNEs. (4) Being a publicly traded firm and having successful experience in cross-border M&As both intensify the negative impact of negative political coverage on the success rate of cross-border M&As by EMNEs.

Albert, S., & David, W. (1985). Organizational Identity. Research in Organizational Behavior, (7), 263–295.

Alsem, K. J., Brakman, S., Hoogduin, L., et al. (2008). The impact of newspapers on consumer confidence: does spin bias exist? Applied Economics, 40(5), 531–539. https://doi.org/10.1080/00036840600707100

Amankwah-Amoah, J., & Debrah, Y. A. (2016). Toward a construct of liability of origin. Industrial and Corporate Change, dtw021. https://doi.org/10.1093/icc/dtw021

Bartlett, C. A., & Sumantra, G. (2000). Going Global: Lessons from Late Movers. Harvard Business Review, 78(2), 132–142.

Blomkvist, K., & Drogendijk, R. (2013). The Impact of Psychic Distance on Chinese Outward Foreign Direct Investments. Management International Review, 53(5), 659–686. https://doi.org/10.1007/s11575-012-0147-y

Burke, J. (2008). Primetime Spin: Media Bias and Belief Confirming Information. Journal of Economics & Management Strategy, 17(3), 633–665. https://doi.org/10.1111/j.1530-9134.2008.00189.x

Chen, Y., & Guo, W. (2018). Institutional Risks and Success of Chinese Cross-border Acquisitions: Moderating Role of Diplomatic Relations and Economic ‘Soft Power’ (Chinese). World Economy Studies, 05(05), 51–64,136. https://doi.org/10.13516/j.cnki.wes.2018.05.005

Cheng, C., Xie, H., & Chi, R. (2017). Focus on Organizational Legitimacy of Cross-border Mergers and Acquisitions of Chinese Enterprises: Internal, External or Internal+External (Chinese). Journal of Management World, 13(04), 158–173. https://doi.org/10.19744/j.cnki.11-1235/f.2017.04.013

Cheng, Y., Cheng, D., & Lu, J. (2021). The Impact of International Public Opinion on the Introduction of Foreign Direct Investment in China: Empirical Research Based on Gdelt News Big Data (Chinese). World Economy Studies, 02(07), 19–33+135. https://doi.org/10.13516/j.cnki.wes.2021.07.002

Cuervo-Cazurra, A., Luo, Y., Ravi, R., et al. (2018). The Impact of the Home Country on Internationalization. Journal of World Business, 53(5), 593–604. https://doi.org/10.1016/j.jwb.2018.06.002

Cui, L., & Jiang, F. (2012). State ownership effect on firms’ FDI ownership decisions under institutional pressure: a study of Chinese outward-investing firms. Journal of International Business Studies, 43(3), 264–284. https://doi.org/10.1057/jibs.2012.1

Deng, L., & Liu, D. (2017). Country Image and Exports—An Empirical Analysis Based on Gravity Model (Chinese). Journal of International Trade, 06(07), 63–73. https://doi.org/10.13510/j.cnki.jit.2017.07.006

Deng, P., Delios, A., & Peng, M. W. (2020). A geographic relational perspective on the internationalization of emerging market firms. Journal of International Business Studies, 51(1), 50–71. https://doi.org/10.1057/s41267-019-00276-y

Dikova, D., & Rao Sahib, P. (2013). Is cultural distance a bane or a boon for cross-border acquisition performance? Journal of World Business, 48(1), 77–86. https://doi.org/10.1016/j.jwb.2012.06.009

Dikova, D., Sahib, P. R., & van Witteloostuijn, A. (2010). Cross-border acquisition abandonment and completion: The effect of institutional differences and organizational learning in the international business service industry, 1981–2001. Journal of International Business Studies, 41(2), 223–245. https://doi.org/10.1057/jibs.2009.10

Du, X., Yang, B., Qi, C., et al. (2015). Mechanism of Overcoming the Liability of Foreignness: Organizational Identity Change—An Exploratory Case Study of Lenovo and COSCO (Chinese). China Industrial Economics, 10(12), 130–145. https://doi.org/10.19581/j.cnki.ciejournal.2015.12.010

Edman, J. (2016). Reconciling the advantages and liabilities of foreignness: Towards an identity-based framework. Journal of International Business Studies, 47(6), 674–694. https://doi.org/10.1057/jibs.2016.29

Goldstein, A. (2008). Who’s Afraid of Emerging-Market TNCs? Or: Are Developing Countries Missing Something in the Globalization Debate? The Rise of Transnational Corporations from Emerging Markets. https://doi.org/10.4337/9781848441460.00019

Hawn, O. (2021). How media coverage of corporate social responsibility and irresponsibility influences cross‐border acquisitions. Strategic Management Journal, 42(1), 58–83. https://doi.org/10.1002/smj.3212

Hymer, S. (1960). The International Operations of National Firms: A Study of Direct Foreign Investment [PhD thesis]. Massachusetts Institute of Technology.

Jia, J., & Li, W. (2015). Experience and Success of Chinese Cross-border Acquisitions: Moderating Role of Non-related Experience and Government Factors (Chinese). World Economy Studies, 06(08), 48–58+128. https://doi.org/10.13516/j.cnki.wes.2015.08.006

Jia, J., & Li, W. (2016). Distance, Strategic Motivation, and the Completion of Chinese Cross-border Acquisitions: A View from Institutional Theory and the Springboard Perspective (Chinese). Nankai Business Review, 19(06), 122–132.

Jia, J., & Meng, Y. (2022). Experiential Learning, Institutional Quality and Chinese SOE’s Cross-border Acquisitions (Chinese). Nankai Business Review, 25(03), 49–63.

Jia, J., Li, W., & Guo, B. (2015). Influence of Prior Experience on Chinese Firms’ Cross-border Acquisitions: A Study from Perspective of Geographic Distance and Government’s Role (Chinese). Journal of International Trade, 09(10), 87–97. https://doi.org/10.13510/j.cnki.jit.2015.10.009

Jia, Y., & Zhang, C. (2019). Influence of National Image on China’s Outward Foreign Direct Investment (Chinese). Economic Review, (04), 108–126. https://doi.org/10.19361/j.er.2019.04.08

Kogut, B., & Singh, H. (1988). The Effect of National Culture on the Choice of Entry Mode. Journal of International Business Studies, 19(3), 411–432. https://doi.org/10.1057/palgrave.jibs.8490394

Lebedev, S., Peng, M. W., Xie, E., et al. (2015). Mergers and acquisitions in and out of emerging economies. Journal of World Business, 50(4), 651–662. https://doi.org/10.1016/j.jwb.2014.09.003

Li, G., & Meng, L. (2019). Public Opinion and International Trade: An Example of US Import (Chinese). The Journal of World Economy, 42(08), 146–169. https://doi.org/10.19985/j.cnki.cassjwe.2019.08.008

Li, S., & Wu, C. (2016). A Study of Chinese Companies’ M&As’ Success and Failure: From the Perspective of Politics and Culture” (Chinese). Nankai Business Review, 19(03), 18–30.

Liu, H., Chen, X., & Li, W. (2018). Country Reputation and Trade Margins: Evidence from Cross-country Panel Data (Chinese). Economic Review, 06(02), 74–88. https://doi.org/10.19361/j.er.2018.02.06

Liu, X., & Li, Y. (2016). An Empirical Study on the Determinants of Cross-border M&A Performance (Chinese). International Business, 07(03), 65–73. https://doi.org/10.13509/j.cnki.ib.2016.03.007

Marano, V., Tashman, P., & Kostova, T. (2017). Escaping the iron cage: Liabilities of origin and CSR reporting of emerging market multinational enterprises. Journal of International Business Studies, 48(3), 386–408. https://doi.org/10.1057/jibs.2016.17

Meglio, O. (2016). The Acquisition Performance Game: A Stakeholder Approach. In: The Routledge Companion to Mergers and Acquisitions. Routledge: Oxford, UK.

Miller, D. T., & Ross, M. (1975). Self-serving biases in the attribution of causality: Fact or fiction? Psychological Bulletin, 82(2), 213–225. https://doi.org/10.1037/h0076486

Ragozzino, R. (2009). The Effects of Geographic Distance on the Foreign Acquisition Activity of U.S. Firms. Management International Review, 49(4), 509–535. https://doi.org/10.1007/s11575-009-0006-7

Ramachandran, J., & Anirvan, P. (2010). The Liabilities of Origin: An Emerging Economy Perspective on the Costs of Doing Business Abroad. In: Advances in International Management, edited by Devinney Timothy, Pedersen Torben, and Tihanyi Laszlo. Emerald Group Publishing Limited. pp. 231–265. https://doi.org/10.1108/S1571-5027(2010)00000230017

Ramirez, C. D., & Rong, R. (2012). China Bashing: Does Trade Drive the “Bad” News about China in the USA? Review of International Economics, 20(2), 350–363. Portico. https://doi.org/10.1111/j.1467-9396.2012.01026.x

Su, L., & Qin, Y. (2023). Diversified and Contradictory: The American Mainstream Media on the Construction of China’s Space Image—Take New York Times and Washington Post as Example (Chinese). Media Forum, 6(12), 4–9.

Van de Ven, A. H., & Polley, D. (1992). Learning While Innovating. Organization Science, 3(1), 92–116. https://doi.org/10.1287/orsc.3.1.92

Wang, Y., & Li, S. (2017). Will Social Trust Improve Corporate M&A Performance? (Chinese). Journal of Management World, (12), 125–140. https://doi.org/10.19744/j.cnki.11-1235/f.2017.12.013

Wei, J., & Wang, S. (2017). From Reaction to Proaction: Legitimacy Strategy Evolution of WANXIANG in the United Stated (2014-2015) (Chinese). Journal of Management World, (08), 136–153+188. https://doi.org/10.19744/j.cnki.11-1235/f.2017.08.013

Wei, J., & Yang, Y. (2018). Bridging the Chasm Between Identities: Identity Asymmetry and Post-acquisition Integration Strategy (Chinese). Journal of Management World, 34(06), 140–156+188. https://doi.org/10.19744/j.cnki.11-1235/f.2018.06.012

Wei, J., Wang, D., & Liu, Y. (2020). Disadvantages of Original Country and Legitimacy Strategies: Case Studies on EMNEs’ Cross-border M&A (Chinese). Journal of Management World, 36(03), 101–120. https://doi.org/10.13516/j.cnki.wes.2017.05.005

Xiao, Y. (2024). Critical Discourse Analysis on the Construction of China’s Image by the Washington Post (Chinese). Media Forum, 7(05), 4–9.

Yan, D. (2011). A Research on the Institutional Distance, International Experience and Chinese Overseas Acquisitions (Chinese). Nankai Economic Studies, 06(05), 75–97. https://doi.org/10.14116/j.nkes.2011.05.006

Yang, B., & Liu, J. (2020). Liability of Origin: The ‘Born Disadvantages’ Faced by EMNEs during Internationalization: A Literature Review and Integrating Framework Construction (Chinese). Foreign Economics & Management, 42(01), 113–125. https://doi.org/10.16538/j.cnki.fem.20190620.006

You, J., & Wu, J. (2012). Spiral of Silence: Media Sentiment and the Asset Mispricing (Chinese). Economic Research Journal, 47(07), 141–152+13.

Zaheer, S. (1995). Overcoming the Liability of Foreignness. Academy of Management Journal. 38(2), 341–363. https://doi.org/10.2307/256683

Zhang, H., & Wan, R. (2017). How A Country’s International Image is Shaped by the Media—A Comparative Study Based on CCTV, BBC and CNN International News Reports (Chinese). China Publishing Journal, (05), 43–49.

Zhang, J., Wei, X., & Heiko, A. (2010). Analysis of Factors that Determine the Success or Failure of Chinese Enterprises’ Overseas Acquisitions (Chinese). Journal of Management World, 11(03), 97–107. https://doi.org/10.19744/j.cnki.11-1235/f.2010.03.011

Zhang, J., Li, P., & Chen, Y. (2017). Does Geographic Distance Affect the Decision-Making Behavior of Cross-border M&A? (Chinese). World Economy Studies, 05(05), 5161+77+136. https://doi.org/10.13516/j.cnki.wes.2017.05.005

Zhang, X., Guo, W., Jiang, M., et al. (2021). Negative Public Opinion in Host Country and Enterprise OFDI: Sentiment Quantitative Analysis Based on the Mainstream News Media in the Host Country (Chinese). Industrial Economics Research, 06(25), 69-82. https://doi.org/10.13269/j.cnki.ier.2021.05.006

Zhu, H., & Zhu, Q. (2016). Mergers and acquisitions by Chinese firms: A review and comparison with other mergers and acquisitions research in the leading journals. Asia Pacific Journal of Management, 33(4), 1107–1149. https://doi.org/10.1007/s10490-016-9465-0