A Clash of Cultures: The Governance and Valuation Effects of Corporate Cultural Distance

2021 ◽  
Author(s):  
Stephen Ferris ◽  
Narayanan Jayaraman ◽  
Tim Zhang
Keyword(s):  
Cultural Distance ◽  
Valuation Effects ◽  
Clash Of Cultures

scholarly journals Valuation effects of cultural disparity on cross border mergers: The evidence from India

2019 ◽  
Vol 8 (4) ◽  
pp. 21-40
Author(s):  
Manish Tewari ◽  
Pradip Banerjee ◽  
Soumen De
Keyword(s):  
Cultural Distance ◽  
Abnormal Returns ◽  
Business Group ◽  
Cross Sectional ◽  
Valuation Effects ◽  
Cross Border ◽  
Cumulative Abnormal Returns ◽  
Long Run ◽  
Acquiring Firms ◽  
Short Run

The object of this study is to explore the effect of cultural distance on both the long run and short run performance of cross border mergers and acquisitions undertaken by Indian acquiring firms. We utilize buy and hold returns (BHAR), cumulative abnormal returns (CAR) and cross-sectional regression analysis in our study. Adopting the traditional Hofstede measure of cultural distance and other pertinent variables, commonly used to measure cultural differences, we document a negative and statistically significant influence of cultural distance on Indian cross-border M&As and corroborate some of other findings reported in prior research. Also, we find that the BHAR is nevertheless higher when the acquisitions are friendly, paid for 100% cash, and the acquiring firm is large, older and belongs to a business group. The inclusion of the variable ‘business group’ along with industry relatedness and acquirer size provides valuable insights into the Indian cross border acquisition landscape, wherein business groups dominate to a great extent.

The Determinants of Merger Withdrawals’ Abnormal Returns in The Australian Market

2015 ◽  
pp. 89-110 ◽  
Author(s):  
Thuy Nguyen Thu ◽  
Giang Dao Thi Thu ◽  
Hoang Truong Huy
Keyword(s):  
Financial Crisis ◽  
Event Study ◽  
Abnormal Returns ◽  
Market Response ◽  
Crisis Period ◽  
Valuation Effects ◽  
Event Study Method ◽  
Private And Public ◽  
Method Of Payment ◽  
The Impact

This paper examines the abnormal returns in merger withdrawals in Australia, especially distinguishing the market response between private and public targets. We also study the determinants of those abnormal returns, including the method of payment and the impact of financial crisis periods. Using the event study method, we document that in the Australian context, the announced withdrawal of mergers involving private targets creates significantly negative valuation effects in comparison with the valuation effects in withdrawal of mergers involving public targets. We also find that a financial crisis period strongly affects abnormal returns of merger withdrawals. However, the method of payment does not have any impact on the abnormal returns.

Revisit the CD Paradox in Entry Model Choice: Toward the Perspective of Strategic Fit

2018 ◽  
Vol 18 (3) ◽  
pp. 86-103
Keyword(s):  
Joint Venture ◽  
Cultural Distance ◽  
Model Choice ◽  
Outward Fdi ◽  
Strategic Fit ◽  
Market Expansion ◽  
Technological Competence ◽  
Entry Model ◽  
Wholly Owned Subsidiary ◽  
Strategic Motives

The effect of cultural distance (CD) on the entry mode choice (EMC) has been intensively studied but the empirical results are mixed. This study adopts the strategic fit perspective to examine how firms’ strategic motives and technological ownerships may influence the EMC in face of different cultural distances. Analyzing Taiwanese outward FDI cases from 2004 to 2007, this study found that firms entering the culture-distant countries would choose the wholly-owned subsidiary (WOS) mode when emphasizing more about the protection of technological competence than market expansion, or else would choose the joint-venture (JV) mode when the market expansion is prioritized.

Is the Updated Cultural Distance Measurement Better?

2017 ◽  
Vol 17 (3) ◽  
pp. 107-134
Author(s):  
Zhi-Bin Zhou ◽  
Jong-Wook Kwon ◽  
Bo Zhang ◽  
Min-Kyo Seo
Keyword(s):  
Cultural Distance ◽  
Distance Measurement

North Korea's Clash of Cultures

2008 ◽  
Vol 4 (2) ◽  
pp. 68-82 ◽  
Author(s):  
Ralph C. Hassig ◽  
Kongdan Oh
Keyword(s):  
Clash Of Cultures

Palestine-Israel and the Neoliberal Ideal

2017 ◽  
Vol 34 (4) ◽  
pp. 1-27
Author(s):  
Luke Mathew Peterson
Keyword(s):  
World War I ◽  
Political Conflict ◽  
Territorial Dispute ◽  
Early Twenty ◽  
Economic Forces ◽  
Local Actors ◽  
History Of ◽  
Non Local ◽  
Clash Of Cultures ◽  
Social Upheaval

The following study envisions the modern history of the Palestinian- Israeli conflict through the application of previously underutilized theoretical frames. Beginning with the unprecedented political and social upheaval wrought upon the Middle East after the end of World War I, the article unfolds in three distinct sections. The first section provides an historical introduction to the global, transnational forces that guided the developing infrastructure of political conflict within the region. The second section articulates the ideological parameters of the international political and economic forces (“neoliberalism”) that connect the past and present of political conflict in the region as well as the local (state and non-state) and non-local actors involved in its contemporary manifestation. The third and final section reconceptualizes the Palestinian-Israeli conflict not exclusively as a territorial dispute or as a nebulous clash of cultures, but rather as a deliberate, operational casualty enduring in the service of an aggressive, transnational, and indeed historical force whose trajectory spans the length of the twentieth and early twenty-first centuries: neoliberalism. In each sphere in which the neoliberal ideal has been applied – one, an historical fait accompli, another, a contemporary situation en cours – an important, connective element persists: the distinctly non-local origin of both the historical forces and the contemporary economic manifestations under examination.

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