A Theory of Host Country Sentiments: An Illustration in Cross-Border Acquisitions

This study develops a theory of host country sentiments to explain how social sentiments shape the legitimacy and outcomes of cross-border acquisitions. Focusing on acquisitions by emerging-market firms in an advanced economy, the authors examine how public discourse stimulates, mobilizes, and legitimizes sentiments toward foreign firms and their strategic actions. The findings highlight how different targets and dynamics of host country sentiments, including sentiment volatility, wavelength, and augmentation, influence the likelihood of acquisition completion. The study contributes to international business research by demonstrating how social sentiments interact with public discourse and multinational enterprise strategies.