Journal article
Cultural Heterogeneity of Top Management Teams, Cross-Border Acquisitions, and Financial Performance of Chinese Publicly Listed Companies
Emerging Markets Finance and Trade, Vol.60(8), pp.1748-1761
2024
Abstract
Using data from Chinese publicly listed companies (PLCs) over the 2010–2017 period, this paper examines the impact of cultural heterogeneity within the top management team (TMT) on the post-acquisition performance of cross-border acquisitions (CBAs). TMT cultural heterogeneity is measured as the cultural distance between the board chairperson and chief executive officer (CEO), based on the south-rice-north-wheat cultural dichotomy in traditional China in 1916. Overall, we find that TMT cultural heterogeneity can increase the likelihood of CBAs. However, it also has a significantly negative impact on both the market performance and profitability of privately-owned Chinese PLCs after the CBAs. To provide a comprehensive analysis, we also explore the moderating effects of state ownership and high-tech industries. The results reveal that TMT cultural heterogeneity can actually improve the market performance of CBAs conducted by state-owned PLCs, and it can enhance the profitability performance of CBAs within the high-tech industry. Our analysis highlights the significance of TMT cultural heterogeneity during the post-acquisition integration process following CBAs.
Details
- Title
- Cultural Heterogeneity of Top Management Teams, Cross-Border Acquisitions, and Financial Performance of Chinese Publicly Listed Companies
- Authors
- Lili Kang (Author) - Shanghai Lixin University of Accounting and FinanceFei Peng (Corresponding Author) - Shanghai Lixin University of Accounting and FinanceSajid Anwar (Corresponding Author) - University of the Sunshine Coast, Queensland, School of Business and Creative Industries
- Publication details
- Emerging Markets Finance and Trade, Vol.60(8), pp.1748-1761
- Publisher
- Routledge
- DOI
- 10.1080/1540496X.2023.2278663
- ISSN
- 1558-0938
- Organisation Unit
- School of Business and Creative Industries; Indigenous and Transcultural Research Centre
- Language
- English
- Record Identifier
- 99985098602621
- Output Type
- Journal article
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