To what extent does national culture influence the success of cross-border mergers and acquisitions?

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Increasing scientific and practical importance of CBM&A, lack of economic consensus regarding its relationship with culture and a scarcity of research with respect to the individual effect of demarcated aspects of culture and CBM&A, gave rise to this research. The sample consists of 738 deals, with only European firms, and deals announced and completed between 2009 and 2019. Hofstede’s dimensions are used as a proxy for national culture and CARs around announcement of the deal as a proxy for CBM&A performance. This research makes a distinction between the relationship of acquirer’s national cultural values with CARs, and the distance between acquirer and target firm national cultural values and CARs. The first model show highly significant expected relationships of UAI (negative), PDI (positive), IND (positive), but an unexpected negative sign of MAS. The latter model with cultural differences show results which are insignificant and do not exhibit high effects overall. In addition, regression results does not show substantial evidence that CBM&A experience of acquiring firm moderate the relationship. For different event windows (- 1,+1 & -5,+5) than applied in the main model (-2,+2), the same signs seem to hold and results do not substantially deviate.
Faculteit der Managementwetenschappen