The influence of culture on cross-border M&A performance. A German perspective

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2021-07-16
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en
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This study examines the role of cultural distance on merger performance for German firms engaging in cross-border M&A deals. The sample consists of 256 firms ranging from deals from 2000 to 2019. The proxy for merger performance in this study is the cumulative abnormal returns. Cultural distance is measured with help of the cultural dimensions created by Hofstede (1980). Furthermore, this study examines whether experience and firm size can be used as moderators for cultural distance. At last, the sample is divided into two groups, to measure whether the effect of cultural distance on merger performance has diminished in the recent years. No link has been found between cultural distance and merger performance. Also, no link has been found for experience on merger performance. There is a significant negative correlation between firm size and merger performance. Both moderators failed to show any significance, and thus could not be used. At last, there has not been a significant difference between the early stages of the sample and the more recent part of the sample.
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Faculteit der Managementwetenschappen