Chakrabarti, Gupta-mukherjee, Jayaraman (2009)

Question 1

Key message

Answer 1

Cultural disparity between two merging partners is often blamed for ruining M&A
Cultural distance is not equal to cultural incongruity: cultural difference can have great contributions to long-term performance

Findings:
- Long-term stock market performance of acquirers is positively and significantly related to the cultural distance between the target and acquirer
- Culturally distant acquisitions perform better than than close.