Cultural Distance and Acquisition Performance Do culturally diverse TMTs have an impact?

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2023-09-08

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en

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Mergers and acquisitions have seen a dramatic rise in attention in literature over the past few decades. However, prior research remains divided over the impact of cultural distance on the performance outcomes of cross-border M&As. Thus, this thesis aims to provide new insights into the relationship between cultural distance and cross-border M&A performance by proposing top management team (TMT) cultural diversity as a moderator. TMT cultural diversity has been proposed as a powerful resource in the world of acquisitions, capable of overcoming cultural distance through the differing knowledge possessed by culturally diverse members. Therefore, this thesis was conducted by sampling 55 cross-border acquisitions of Dutch companies listed on the AEX index, irrespective of year or industry. The sample was tested through an ordinary least squares regression which resulted in six models. Two base models, two models detailing the influence of the independent variable, and two models looking at moderating effects.

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Faculteit der Managementwetenschappen