• Login
    View Item 
    •   SMARTech Home
    • College of Business (CoB)
    • TI:GER (Technical Innovation: Generating Economic Results)
    • TI:GER Student Working Papers
    • View Item
    •   SMARTech Home
    • College of Business (CoB)
    • TI:GER (Technical Innovation: Generating Economic Results)
    • TI:GER Student Working Papers
    • View Item
    JavaScript is disabled for your browser. Some features of this site may not work without it.

    Mars-Venus Marriages: Culture and Cross-Border M&A

    Thumbnail
    View/Open
    gt_tiger_mars.pdf (364.5Kb)
    Date
    2004-09
    Author
    Chakrabarti, Rajesh
    Jayaraman, Narayanan
    Mukherjee, Swastika
    Metadata
    Show full item record
    Abstract
    We explore different factors affecting the long-term performance of cross-border M&A with a special focus on cultural distance between the countries of the two firms. Using a sample of over 400 cross-border acquisitions in the period 1991-2000, we find that crossborder acquisitions are associated with a significantly positive “announcement effect” on the acquirer’s share value, followed by a partial reversal of these gains in the long-run. Considering several deal-specific variables and country-level economic and cultural variables, we find that acquisitions perform relatively better in the long-run if the acquirer and the target come from countries that are culturally more disparate. The “announcement effect” appears to miss this cultural aspect though it is more cautious about economic disparity between the two countries. Among deal characteristics, cash acquisitions perform better in the long-run. We use the Hofstede measure of cultural dimensions to define cultural distance and also examine alternative measures such as language, religion and legal origin to capture cultural differences.
    URI
    http://hdl.handle.net/1853/10735
    Collections
    • TI:GER Student Working Papers [6]

    Browse

    All of SMARTechCommunities & CollectionsDatesAuthorsTitlesSubjectsTypesThis CollectionDatesAuthorsTitlesSubjectsTypes

    My SMARTech

    Login

    Statistics

    View Usage StatisticsView Google Analytics Statistics
    facebook instagram twitter youtube
    • My Account
    • Contact us
    • Directory
    • Campus Map
    • Support/Give
    • Library Accessibility
      • About SMARTech
      • SMARTech Terms of Use
    Georgia Tech Library266 4th Street NW, Atlanta, GA 30332
    404.894.4500
    • Emergency Information
    • Legal and Privacy Information
    • Human Trafficking Notice
    • Accessibility
    • Accountability
    • Accreditation
    • Employment
    © 2020 Georgia Institute of Technology