Lost in translation? The effect of cultural values on mergers around the world

• 成果类型: Article
• 署名作者: Ahern, Kenneth R.; Daminelli, Daniele; Fracassi, Cesare
• 署名单位: University of Southern California; Polytechnic University of Milan; University of Texas System; University of Texas Austin
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2012.08.006
• 发表日期: 2015
• 页码: 165-189
• 关键词: Mergers & Acquisitions; Cultural values; trust; International; Cross-border

摘要

We find strong evidence that three key dimensions of national culture (trust, hierarchy, and individualism) affect merger volume and synergy gains. The volume of cross-border mergers is lower when countries are more culturally distant. In addition, greater cultural distance in trust and individualism leads to lower combined announcement returns. These findings are robust to year and country-level fixed effects, time-varying country-pair and deal-level variables, as well as instrumental variables for cultural differences based on genetic and somatic differences. The results are the first large-scale evidence that cultural differences have substantial impacts on multiple aspects of cross-border mergers. (C) 2012 Elsevier B.V. All rights reserved.