Date of Award
12-2012
Thesis Date
12-2012
Degree Type
Honors Thesis-Unrestricted
Degree Name
B.S.
Department
Economics and Finance
Degree Program
Finance
Director
Peihwang Philip Wei
Abstract
This paper examines the relationship between national culture differences and five-day cumulative abnormal returns of acquirers around cross-border merger announcements. The sample consists of 1,200 cross-border deals by frequent acquirers from emerging countries for the period of January 1, 1985 to June 30, 2008. The main objective is to analyze the relation between the difference in Hofstede (1984)’s four cultural dimensions --- power distance, individualism, masculinity, and uncertainty avoidance and the merger performance. The results imply the compatibility of some cultural dimensions, individualism in particular, that result in gains in merger. The results also show that the cultural effects vary with the firm size. In addition, the evidence provides support for the hubris hypothesis by Roll (1986).
Creative Commons License
This work is licensed under a Creative Commons Attribution-Noncommercial 3.0 License
Recommended Citation
Liu, Chaoyun, "The Compatibility of National Culture in International Mergers and Acquisitions" (2012). Senior Honors Theses. 27.
https://scholarworks.uno.edu/honors_theses/27
Rights
The University of New Orleans and its agents retain the non-exclusive license to archive and make accessible this honors thesis in whole or part in all forms of media, now or hereafter known. The author retains all other ownership rights to the copyright of the honors thesis.