Distance and Within-Country Diversity Effects on Foreign Acquisitions
This paper explores how within-country diversity, both in terms of language and religion, influences the ownership structure of foreign acquisitions. Numerous commentators have acknowledged the importance of “within-country diversity,” but to date this issue has received minimal attention. Our findi...
Saved in:
Main Authors: | , , |
---|---|
Format: | text |
Language: | English |
Published: |
Institutional Knowledge at Singapore Management University
2014
|
Subjects: | |
Online Access: | https://ink.library.smu.edu.sg/lkcsb_research/4269 https://doi.org/10.5465/AMBPP.2014.15099abstract |
Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
Institution: | Singapore Management University |
Language: | English |
id |
sg-smu-ink.lkcsb_research-5268 |
---|---|
record_format |
dspace |
spelling |
sg-smu-ink.lkcsb_research-52682018-03-19T03:18:45Z Distance and Within-Country Diversity Effects on Foreign Acquisitions DOW, Douglas CUYPERS, Ilya ERTUG, Gokhan This paper explores how within-country diversity, both in terms of language and religion, influences the ownership structure of foreign acquisitions. Numerous commentators have acknowledged the importance of “within-country diversity,” but to date this issue has received minimal attention. Our findings, based on a sample of 59,092 foreign acquisitions across 67 acquirer and 69 target countries, indicate that the diversity of languages and religions within the target’s home country may be an additional source of internal uncertainty and information asymmetry, above and beyond the uncertainty and asymmetry attributable to the linguistic and religious distances between the acquirer and target countries. In contrast, the diversity of languages and religions within the acquirer’s home country act as a source of tacit knowledge, moderating the firm's response to the distance and diversity of the target’s home country. The results indicate that firms from more diverse countries are more aware of the difficulties associated with diverse and distant countries, and in response, more strongly seek out remedies, such as lower equity shareholdings. 2014-01-01T08:00:00Z text https://ink.library.smu.edu.sg/lkcsb_research/4269 info:doi/10.5465/AMBPP.2014.15099abstract https://doi.org/10.5465/AMBPP.2014.15099abstract Research Collection Lee Kong Chian School Of Business eng Institutional Knowledge at Singapore Management University cross border acquisitions diversity psychic distance Business Strategic Management Policy |
institution |
Singapore Management University |
building |
SMU Libraries |
continent |
Asia |
country |
Singapore Singapore |
content_provider |
SMU Libraries |
collection |
InK@SMU |
language |
English |
topic |
cross border acquisitions diversity psychic distance Business Strategic Management Policy |
spellingShingle |
cross border acquisitions diversity psychic distance Business Strategic Management Policy DOW, Douglas CUYPERS, Ilya ERTUG, Gokhan Distance and Within-Country Diversity Effects on Foreign Acquisitions |
description |
This paper explores how within-country diversity, both in terms of language and religion, influences the ownership structure of foreign acquisitions. Numerous commentators have acknowledged the importance of “within-country diversity,” but to date this issue has received minimal attention. Our findings, based on a sample of 59,092 foreign acquisitions across 67 acquirer and 69 target countries, indicate that the diversity of languages and religions within the target’s home country may be an additional source of internal uncertainty and information asymmetry, above and beyond the uncertainty and asymmetry attributable to the linguistic and religious distances between the acquirer and target countries. In contrast, the diversity of languages and religions within the acquirer’s home country act as a source of tacit knowledge, moderating the firm's response to the distance and diversity of the target’s home country. The results indicate that firms from more diverse countries are more aware of the difficulties associated with diverse and distant countries, and in response, more strongly seek out remedies, such as lower equity shareholdings. |
format |
text |
author |
DOW, Douglas CUYPERS, Ilya ERTUG, Gokhan |
author_facet |
DOW, Douglas CUYPERS, Ilya ERTUG, Gokhan |
author_sort |
DOW, Douglas |
title |
Distance and Within-Country Diversity Effects on Foreign Acquisitions |
title_short |
Distance and Within-Country Diversity Effects on Foreign Acquisitions |
title_full |
Distance and Within-Country Diversity Effects on Foreign Acquisitions |
title_fullStr |
Distance and Within-Country Diversity Effects on Foreign Acquisitions |
title_full_unstemmed |
Distance and Within-Country Diversity Effects on Foreign Acquisitions |
title_sort |
distance and within-country diversity effects on foreign acquisitions |
publisher |
Institutional Knowledge at Singapore Management University |
publishDate |
2014 |
url |
https://ink.library.smu.edu.sg/lkcsb_research/4269 https://doi.org/10.5465/AMBPP.2014.15099abstract |
_version_ |
1770572178344902656 |