Cultural tightness–looseness and inter-regional mergers and acquisitions: Evidence from China

Authors

• Hui Liu, Shandong University of Finance and Economics
• Leng Ling, Georgia College & State University
• Ying Wang, Shandong University of Finance and Economics

Document Type

Article

Publication Date

9-1-2024

Publication Title

Accounting and Finance

Abstract

We investigated the role of culture in inter-regional mergers and acquisitions (M&As) within national borders, using a dataset that includes M&As conducted by Chinese listed firms from 2005 to 2019. Our research provides compelling evidence that the likelihood of an acquirer initiating a merger proposal – and the subsequent probability of reaching an agreement – decreases as the cultural tightness gap between the acquiring and target firms widens. Furthermore, we found that this negative impact of cultural tightness distance is more pronounced in non-state-owned firms and firms led by younger CEOs.

Volume Number

64

Issue Number

3

First Page

2577

Last Page

2604

DOI

10.1111/acfi.13228

Recommended Citation

Liu, Hui; Ling, Leng; and Wang, Ying, "Cultural tightness–looseness and inter-regional mergers and acquisitions: Evidence from China" (2024). Faculty and Staff Works. 998.
https://kb.gcsu.edu/fac-staff/998