IDEAS home Printed from https://ideas.repec.org/a/eee/worbus/v36y2001i1p32-57.html
   My bibliography  Save this article

Mergers and acquisitions across European borders: National perspectives on preacquisition due diligence and the use of professional advisers

Author

Listed:
  • Angwin, Duncan

Abstract

Recent years have seen a huge growth in European cross-border mergers and acquisitions (M&A) and considerable attention has been given to how such deals arise and are completed. However, most theoretical emphasis has been placed upon noncultural factors although it is increasingly recognized in other spheres of management theory that management styles and business performance cannot be separated out from national or regional cultural influence. As a consequence, this exploratory study focuses upon the influence of national differences in business culture upon preacquisition management. In this paper we report the findings of a large-scale exploratory survey into whether such cultural differences are reflected in different perceptions of the value of due diligence and the use of professional advisors in the preacquisition phase. The findings suggest that national cultural differences do play an important role in affecting acquirer's perceptions of target companies and we suggest that this may have important consequences for the negotiation of deals and the subsequent management of the postacquisition phase.

Suggested Citation

  • Angwin, Duncan, 2001. "Mergers and acquisitions across European borders: National perspectives on preacquisition due diligence and the use of professional advisers," Journal of World Business, Elsevier, vol. 36(1), pages 32-57, April.
    • Handle: RePEc:eee:worbus:v:36:y:2001:i:1:p:32-57
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1090951600000535
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. David K Tse & June Francis & Jan Walls, 1994. "Cultural Differences in Conducting Intra- and Inter-Cultural Negotiations: A Sino-Canadian Comparison," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 25(3), pages 537-555, September.
    2. Angwin, Duncan & Savill, Brett, 1997. "Strategic perspectives on European cross-border acquisitions: A view from top European executives," European Management Journal, Elsevier, vol. 15(4), pages 423-435, August.
    3. M Krishna Erramilli, 1996. "Nationality and Subsidiary Ownership Patterns in Multinational Corporations," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 27(2), pages 225-248, June.
    4. Srilata Zaheer & Akbar Zaheer, 1997. "Country Effects on Information Seeking in Global Electronic Networks," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 28(1), pages 77-100, March.
    5. Scott Shane, 1994. "The effect of national culture on the choice between licensing and direct foreign investment," Strategic Management Journal, Wiley Blackwell, vol. 15(8), pages 627-642, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Arjun Bhardwaj & Joerg Dietz & Paul W. Beamish, 2007. "Host country cultural influences on foreign direct investment," Management International Review, Springer, vol. 47(1), pages 29-50, February.
    2. Roberto Ragozzino, 2009. "The Effects of Geographic Distance on the Foreign Acquisition Activity of U.S. Firms," Management International Review, Springer, vol. 49(4), pages 509-535, September.
    3. Venkateswaran, Ramya Tarakad & George, Rejie, 2020. "When does culture matter? A multilevel study on the role of situational moderators," Journal of Business Research, Elsevier, vol. 116(C), pages 99-122.
    4. Wilkinson, Timothy J. & Peng, George Z. & Brouthers, Lance Eliot & Beamish, Paul W., 2008. "The diminishing effect of cultural distance on subsidiary control," Journal of International Management, Elsevier, vol. 14(2), pages 93-107, June.
    5. Malik, Tariq H. & Zhao, Yanzhi, 2013. "Cultural distance and its implication for the duration of the international alliance in a high technology sector," International Business Review, Elsevier, vol. 22(4), pages 699-712.
    6. Ulrike Mayrhofer, 2002. "Environnement national et stratégies de rapprochement: une analyse des entreprises françaises et allemandes," Revue Finance Contrôle Stratégie, revues.org, vol. 5(2), pages 61-84, June.
    7. Larimo, Jorma, 2003. "Form of investment by Nordic firms in world markets," Journal of Business Research, Elsevier, vol. 56(10), pages 791-803, October.
    8. Youngok Kim & Sidney Gray, 2009. "An assessment of alternative empirical measures of cultural distance: Evidence from the Republic of Korea," Asia Pacific Journal of Management, Springer, vol. 26(1), pages 55-74, March.
    9. Morschett, Dirk & Schramm-Klein, Hanna & Swoboda, Bernhard, 2010. "Decades of research on market entry modes: What do we really know about external antecedents of entry mode choice?," Journal of International Management, Elsevier, vol. 16(1), pages 60-77, March.
    10. Mayrhofer, Ulrike, 2004. "The influence of national origin and uncertainty on the choice between cooperation and merger-acquisition: an analysis of French and German firms," International Business Review, Elsevier, vol. 13(1), pages 83-99, February.
    11. Anne-Wil Harzing & Markus Pudelko, 2016. "Do We Need to Distance Ourselves from the Distance Concept? Why Home and Host Country Context Might Matter More Than (Cultural) Distance," Management International Review, Springer, vol. 56(1), pages 1-34, February.
    12. Daphne Yiu & Shige Makino, 2002. "The Choice Between Joint Venture and Wholly Owned Subsidiary: An Institutional Perspective," Organization Science, INFORMS, vol. 13(6), pages 667-683, December.
    13. Richards, Malika & Yang, Yi, 2007. "Determinants of foreign ownership in international R&D joint ventures: Transaction costs and national culture," Journal of International Management, Elsevier, vol. 13(2), pages 110-130, June.
    14. Caterina Moschieri & Roberto Ragozzino & Jose Manuel Campa, 2014. "Does Regional Integration Change the Effects of Country-Level Institutional Barriers on M&A? The Case of the European Union," Management International Review, Springer, vol. 54(6), pages 853-877, December.
    15. Nguyen Minh Ha & Quan Minh Quoc Binh & Pham Phi Dang, 2020. "Cultural Distance and Entry Modes in Emerging Markets: Empirical Evidence in Vietnam," JRFM, MDPI, vol. 13(1), pages 1-11, January.
    16. Dean Tjosvold & Chun Hui & Haifa Sun, 2004. "Can Chinese Discuss Conflicts Openly? Field and Experimental Studies of Face Dynamics in China," Group Decision and Negotiation, Springer, vol. 13(4), pages 351-373, July.
    17. Yi-Min Chen, 2008. "How Much Does Country Matter?," International Regional Science Review, , vol. 31(4), pages 404-435, October.
    18. Adrian Tschoegl, 1996. "Country and Firm Sources of International Competitiveness: The Case of the Foreign Exchange Market," Center for Financial Institutions Working Papers 97-19, Wharton School Center for Financial Institutions, University of Pennsylvania.
    19. Gleason, Kimberly C. & Mathur, Ike & Singh, Manohar, 2000. "Operational characteristics and performance gains associated with international licensing agreements: the US evidence," International Business Review, Elsevier, vol. 9(4), pages 431-452, August.
    20. repec:dgr:rugsom:98b27 is not listed on IDEAS
    21. Popli, Manish & Akbar, Mohammad & Kumar, Vikas & Gaur, Ajai, 2016. "Reconceptualizing cultural distance: The role of cultural experience reserve in cross-border acquisitions," Journal of World Business, Elsevier, vol. 51(3), pages 404-412.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:worbus:v:36:y:2001:i:1:p:32-57. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/620401/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.