Date of Award


Thesis Date


Degree Type

Honors Thesis-Unrestricted

Degree Name



Economics and Finance

Degree Program



Peihwang Philip Wei


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).


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Creative Commons License

Creative Commons Attribution-Noncommercial 3.0 License
This work is licensed under a Creative Commons Attribution-Noncommercial 3.0 License