JOURNAL OF MARKETING DEVELOPMENT AND COMPETITIVENESS
Cultural Distance and Chinese Cross-Border
Merger and Acquisition Performance
Author(s): Wang Qian, Wang Ying Chun, Huang Yu Qi, Ding Qi
Citation: Wang Qian, Wang Ying Chun, Huang Yu Qi, Ding Qi, (2017) "Cultural Distance and Chinese Cross-Border Merger and Acquisition Performance," Journal of Marketing Development and Competitiveness, Vol. 11, Iss. 4, pp. 145-156
Article Type: Research paper
Publisher: North American Business Press
Abstract:
The researchers examined the relationship between national cultural distance and Chinese cross-border Merger and Acquisition (M&A) performance using an analysis about a sample of 119 cross-border M&A by Chinese firms from 1995 to 2008.They found that the national cultural distance will has an obvious positive effect on the result following the acquisition in the third year. In addition, they also examined the moderating effect from the contextual factors by hierarchical regression analysis and sub-group regression analysis. The results show that in the long run, the cultural differences are associated more positively with post-acquisition performance when the Chinese firms have the previous transnational M&A experience and the deals take place in a related industry.