Cultural Distance and China’s Overseas M&A Performance: An Empirical Study Based on Cross-border M&A Experience
PEI Zhen1,PENG Fei2
1.School of International Business and Economics, Shanghai University of International Business and Economics, Shanghai 201620, China; 2.School of International Business and Economics, Shanghai Lixin University of Accounting and Finance, Shanghai 201620, China
Abstract Taking 1150 overseas mergers and acquisitions (M&A) cases of 96 Shanghai and Shenzhen listed companies during the period 2010-2015 as samples, this paper explores the heterogeneity of cross-border M&A from a cultural perspective and empirically analyzes the influence of regional culture heterogeneity on the performance of cross-border M&A. The results show that the cultural distance of host country and regional rice culture will reduce the performance of cross-border M&A of Chinese listed companies. The larger the scale of M&A, the greater the negative impact of cultural distance and rice culture. Overseas M&A experience of listed companies can mitigate the negative impact of cultural distance and rice culture on the scale performance of overseas investment, and thus enhance the overseas investment performance of Chinese listed companies. But the positive effect will weaken as the scale of M&A increases
PEI Zhen,PENG Fei. Cultural Distance and China’s Overseas M&A Performance: An Empirical Study Based on Cross-border M&A Experience. Economic Survey, 2019, 36(5): 072.
2019, Vol. 36 
