Cross-border M&A succession: The impact of CEO power and cultural distance
Keywords
No Thumbnail Available
Authors
Issue Date
2021-07-15
Language
en
Journal Title
Journal ISSN
Volume Title
Publisher
Abstract
Despite all the research on the relation between cultural distance and cross-border mergers and acquisitions (CBM&As) results are still incomplete and yet inconclusive. This study examines the effect of cultural distance on the firm performance of the acquiring firm involved in a CBM&A moderated by CEO power. The first part of this study provides insights and understanding in the occurring problems related to the dynamic environment a CBM&A is embedded in. Secondly, a quantitative approach investigated the effect of cultural distance on firm performance and furthermore what role a powerful CEO has in this decision making and how it effects this relation.
The results of this study show that cultural distance has no effect on the firm performance of the acquiring firm. It also pointed out that CEO power has no significant effect on the relation between cultural distance and firm performance. The results emphasized the need for a broader, or a qualitative, approach of the constructs of culture and CEO power.
Description
Citation
Supervisor
Faculty
Faculteit der Managementwetenschappen