The Effect of Cultural Similarity on Mergers and Acquisitions: Evidence from Corporate Social Responsibility

Bereskin, Fred; Byun, Seong K.; Officer, Micah S.; Oh, Jong-Min

doi:10.1017/s0022109018000716

Cited by 146 publications

(55 citation statements)

References 82 publications

(110 reference statements)

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“…As Gordon (1991) mentions cultures are abstract and hard to change. This article expands previous knowledge about cultural and human factors on mergers and acquisitions (Bereskin et al, 2018;Denison and Ko, 2016) by identifying the managerial hubris as a key factors that creates an over-optimism in decision making.…”

Section: Cultural Incompatibilities: Performing Deals On Companies With Different Culturesmentioning

confidence: 81%

“…The first step in initiating a merger or acquisition is to look for a suitable partner. The evaluation of the potential partner should take into account its strengths and weaknesses, investment requirements, quality of the target management and implementation barriers such as cultural differences (Bereskin et al, 2018;Gomes et al, 2013).…”

Section: Pre-deal Proceduresmentioning

confidence: 99%

“…A merger or acquisition with a high cultural fit happens when cultures are similar and combine well, there is a reduced need for organizational integration efforts (Bauer & Matzler, 2014). Having a poor cultural fit is bad because the uncertainty that is associated with cultural distances reinforces the need for monitoring and control and can create managerial conflict (Bereskin et al, 2018;Denison & Ko, 2016).…”

Section: Culture Incompatibilitiesmentioning

confidence: 99%

“…However, as stated by Kiessling, Vlačić and Dabić (2019) mergers and acquisitions' research is mainly focused on the influence of the antecedents of mergers and acquisitions and the "many aspects in the decision-making process of M&A (such as strategy formulation, target identification, due diligence, pricing of the acquisition, postacquisition integration, and subsequent performance)" (p. 1). More specifically, the human dimension is still underexplored, specially the cultural and organizational preparedness (Friedman, Carmeli, Tishler, and Shimizu, 2016;Bereskin et al, 2018).…”

Section: Introductionmentioning

confidence: 99%

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Exploring the Cultural, Managerial and Organizational Implications on Mergers and Acquisitions Outcomes

et al. 2021

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Background/Purpose: This work is focused on the variables that influence the outcomes of mergers and acquisitions, by learning from past mistakes, adopt better strategies and make wiser decisions to enhance the outcomes of their mergers and acquisitions. Using a qualitative approach, this research contributes to existing knowledge on mergers and acquisitions performance by exploring the cultural, managerial and organizational factors dimensions through an integrative approach using multiple perspectives. Methodology: Fifteen interviews were conducted with experienced professionals in multiple areas of mergers and acquisitions. Content analysis was used to interpret the results. This enabled to achieve a more complete set of answers and potential solutions while comparing opinions on the same problems from slightly different angles. Results: Results show the existence of managerial hubris, emotional attachment and over-optimism in mergers and acquisitions. There was a relative support towards standardizing the process of mergers and acquisitions deals, but respondents advise to keep some creativity and flexibility. Conclusion: The article concludes by addressing key issues for mergers and acquisitions performance: capabilities and experience; organizational communication; internal coordination; and, key issues for decision-making.

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Section: Cultural Incompatibilities: Performing Deals On Companies With Different Culturesmentioning

confidence: 81%

Section: Pre-deal Proceduresmentioning

confidence: 99%

Section: Culture Incompatibilitiesmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Exploring the Cultural, Managerial and Organizational Implications on Mergers and Acquisitions Outcomes

et al. 2021

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“…Empirical studies explored the link between CSR and the firm's profitability in mergers. See Deng et al (), Bereskin et al () and Gomes and Marsat ().…”

mentioning

confidence: 99%

Welfare‐improving cooperation with a consumer‐friendly multiproduct corporation

2020

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This paper considers a multiproduct corporation that adopts consumer-friendly activities and cooperates with single plant firms for improving welfare. Comparing competition and (full or partial) cooperation, we show that full cooperation is socially beneficial if products are strong complements, whereas partial cooperation with a higher consumer-friendly activities is beneficial if products are substitutes. We also examine a sequential choice game of endogenous cooperation in which the multiproduct corporation can induce cooperation and show that our findings are supportive at equilibrium. We finally compare different ownerships of the single plant firms and find that foreign ownership decreases the benefits of cooperation. Therefore, a cooperation with multiproduct corporation should be accompanied with active governmental guideline for promoting consumerfriendly activities.

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The effect of mergers and acquisitions on environmental, social and governance performance and market value: Evidence from EU acquirers

Tampakoudis

Anagnostopoulou

2020

Bus Strat Env

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This study explores the effect of environmental, social, and governance (ESG) performance on market value and performance in the context of mergers and acquisitions. We examine whether acquisition of targets with better ESG performance can help acquirers to increase their own ESG performance and whether the market values the increased ESG performance positively. Moreover, we explore whether the acquisition of targets with better ESG performance affects the market value of acquirers. For this study, we utilize a sample of 100 European mergers and acquisitions between 2003 and 2017, for which matching data on the ESG performance of both the target and acquiring firms are available. Our results show that the postmerger ESG performance of the acquirer increases following the acquisition of a target that has higher ESG performance than that of the acquirer in the premerger stage, whereas the postmerger market value of the acquirer increases following an increase in the acquirer's postmerger ESG performance in relation to its premerger ESG performance. Finally, we provide partial evidence of a positive relationship between the postmerger market value of the acquirer and the acquisition of a target with higher ESG performance than itself in the premerger stage.

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The Effect of Cultural Similarity on Mergers and Acquisitions: Evidence from Corporate Social Responsibility

Cited by 146 publications

References 82 publications

Exploring the Cultural, Managerial and Organizational Implications on Mergers and Acquisitions Outcomes

Exploring the Cultural, Managerial and Organizational Implications on Mergers and Acquisitions Outcomes

Welfare‐improving cooperation with a consumer‐friendly multiproduct corporation

The effect of mergers and acquisitions on environmental, social and governance performance and market value: Evidence from EU acquirers

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