Linguistic distance and mergers and acquisitions: Evidence from China

Lu, Li; Duan, Yang; He, Yuqian; Chan, Kam C.

doi:10.1016/j.pacfin.2018.04.002

Cited by 30 publications

(18 citation statements)

References 38 publications

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“…We tested this conjecture by dividing the sample between high-tech and non-high-tech industries. We expected to find that the effect of linguistic distance, one aspect of cultural difference, would be weaker in the high-tech industry (Li et al, 2018).…”

Section: Industry-based DI Erence Analysismentioning

confidence: 95%

Dialect diversity and total factor productivity: Evidence from Chinese listed companies

Xiong

Gao

2022

Front. Psychol.

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Using a sample of Chinese listed companies over the 2007–2019 period, we examined the influence of dialect diversity on a firm's total factor productivity. We found that dialect diversity affects the psychological distance of interpersonal communication and significantly affects the firm's total factor productivity. The results are robust to a battery of tests based on different specifications. The relationship between dialect diversity and a firm's total factor productivity is more pronounced in state-owned enterprises, firms located in southern regions, and more capital-intensive firms. Furthermore, we demonstrated an innovative factor flow mechanism and a human capital accumulation mechanism through which dialect diversity inhibits total factor productivity. Overall, this paper provides new evidence and decision-making reference for coordinating the protection of dialect diversity and high-quality economic development.

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Section: Industry-based DI Erence Analysismentioning

confidence: 95%

Dialect diversity and total factor productivity: Evidence from Chinese listed companies

Xiong

Gao

2022

Front. Psychol.

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“…Before the process of CMA, cultural frictions in interactions may generate misunderstanding or misevaluation of the targets or the potential synergies (Joshi & Lahiri, 2014;Li, Duan, He & Chan, 2018), which could potentially cause the CMA to fail. Hanyu learning lowers the language barrier which in turn can reduce the cultural frictions during the negotiation of the mergers and acquirers.…”

Section: Literature Reviewmentioning

confidence: 99%

Confucius Institute, Belt and Road Initiative, and Internationalization

Wang

Han

Fidrmuc

et al. 2021

International Review of Economics & Finance

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In this paper, we study the role of Confucius Institute in supporting internationalization of Chinese enterprises. Employing a panel dataset containing 66 Belt-Road countries and 75 non Belt-Road countries from 2006 to 2017, we find that the Confucius Institute has had a positive effect on Chinese CMA in general and that this effect has become stronger in Belt-Road countries after the Belt and Road Initiative was launched in 2013. Our results suggest that the earlier the host country joins the Belt and Road Initiative, the stronger is the interactive effect of CI and Belt and Road Initiative. Moreover, we show that the Confucius Classroom, a related program, also positively affects Chinese CMA in the context of the Belt and Road Initiative. These findings are robust to controlling for endogeneity and sample selection biases. JEL-Codes: F230, Z100.

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“…For instance, Apple and SAMSUNG are two competing brands in the cellphone market, but SAMSUNG is also the top supplier of iPhone components (Forbes, 2016), so the practitioners may benefit from knowing how such relationships develop over time. Li et al (2018) indicate that the linguistic distance, a core component of culture, negatively affects acquirer firms' return in mergers and acquisitions (M&A), which accentuates the importance of cultural factors. Future research should investigate how acquirer firms maintain and develop relationships with their acquired firms' existing buyers and suppliers in the presence of cultural factors.…”

Section: Culture and Other Factorsmentioning

confidence: 99%

The buyer–seller relationship: a literature synthesis on dynamic perspectives

Hussain

Jing

Junaid

et al. 2020

JBIM

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Purpose Contemporary scholars contend that the buyer–seller relationship is dynamic in nature, so it grows, matures and declines over time. However, most studies that adopt the dynamic perspective debates its conceptualization and how dynamic effects are captured. This scholarly discourse has led to multiple dynamic perspectives and resulted in fragmented and scattered literature on the subject. This study aims to synthesize the large body of research on dynamic perspectives in a systematic way. Design/methodology/approach This paper follows a systematic review approach to extract and review 192 research articles from four electronic databases: Web of Science, EBSCOhost Business, ScienceDirect and Emerald. Based on the inclusion criteria that the articles examine time-dependent relationship development in light of a generalizable dynamic perspective, 61 articles were selected for the final examination and reporting. Findings This review reveals that most research on the buyer–seller dynamic relationship follows at least one of four perspectives: the relationship lifecycle, relationship age, relationship velocity and the asymmetric–dynamic perspective. Each perspective offers a distinct conceptualization of relationship development and has certain advantages that enable researchers to capture information about relationships’ growth trajectory in a unique manner. Practical implications Firms need a set of diverse strategies for their customers, depending on the state of the relationships’ development, as strategies that pay off at initial levels may fail at later stages. This study helps managers select an appropriate dynamic perspective that best aligns with their customers’ stage of relationship development so they can devise customized relationship-management strategies. Originality/value To the best of the authors’ knowledge, this article is the first attempt to organize the discourse of a large body of research on dynamic perspectives, and therefore it helps academicians and practitioners to choose the dynamic perspective that best suits their objectives and research settings. This review documents key research areas that have been overlooked and highlights opportunities for future research.

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Linguistic distance and mergers and acquisitions: Evidence from China

Cited by 30 publications

References 38 publications

Dialect diversity and total factor productivity: Evidence from Chinese listed companies

Dialect diversity and total factor productivity: Evidence from Chinese listed companies

Confucius Institute, Belt and Road Initiative, and Internationalization

The buyer–seller relationship: a literature synthesis on dynamic perspectives

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