Politics

Conservative CEOs Pursue Riskier International Deals Than Liberals Do

They’re drawn by the prospect of greater control.

by

Amy Meeker

by

Amy Meeker

From the Magazine (January–February 2024)

Yaroslav Danylchenko/Stocksy

Summary.

Though evidence suggests that conservatives are generally more risk-averse than liberals are, the reverse is true when it comes to foreign expansion. A recent study showed that conservatives leaned toward overseas acquisitions, which are more perilous than alliances (an approach liberals favored). Why? Because acquisitions gave them greater control, and the desire for it outweighed their fear of loss.

Aaron Hill of the University of Florida and colleagues studied 1,027 decisions to enter foreign markets made by Fortune 500 CEOs over the past decade and examined the executives’ political-campaign contributions to determine their leanings. They found that conservative leaders were more likely to acquire companies than to form alliances, while for liberal leaders it was just the reverse. The conclusion: Conservative CEOs pursue riskier international deals than liberals do.

A version of this article appeared in the January–February 2024 issue of Harvard Business Review.

Amy Meeker is a senior editor at Harvard Business Review.

Conservative CEOs Pursue Riskier International Deals Than Liberals Do

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