Cross-border M&A and the impact of cultural differences. The Latin American case

Over the last decade, the Latin American Cross-Border M&A activity experienced a significant increase in terms of volume, value, and complexity. Between 2002 and 2011, 1483 M&A announcements involving Latin American bidders were found in this study. From this sample 344 were targeting compan...

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Detalles Bibliográficos
Autor Principal: Guardiola Fernández, Daniel
Formato: Trabajo de grado (Bachelor Thesis)
Lenguaje:Desconocido (Unknown)
Publicado: 2012
Materias:
Acceso en línea:http://babel.banrepcultural.org/cdm/ref/collection/p17054coll23/id/411
id ir-p17054coll23-411
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spelling ir-p17054coll23-4112020-09-29 Cross-border M&A and the impact of cultural differences. The Latin American case Guardiola Fernández, Daniel Over the last decade, the Latin American Cross-Border M&A activity experienced a significant increase in terms of volume, value, and complexity. Between 2002 and 2011, 1483 M&A announcements involving Latin American bidders were found in this study. From this sample 344 were targeting companies in a foreign country. With the purpose of measuring to what extent CB-M&A can be a catalyst of value creation or destruction for the bidder in the short-term, the event study methodology was employed in a sample of 47 observations. I found that on average, the market reaction is positive after the announcement, leading to the short-term value creation for the Latin American acquirers. Regarding the allocation of investments in terms of geographies, the outcome shows that bidders tend to favor countries with similar cultural values and geographically close. The Hofstede’s cultural dimensions along with additional factors such as language, legal origins, and religion were analyzed in order to evaluate to what degree cultural differences affect cross-border acquisitions. However much the results are not statistically significant, it appears that cultural differences tend to have a negative effect on the bidder’s short-term performance. Cultura; Fusiones y adquisiciones Cross-Border Ciencias sociales; Ciencias sociales / Economía 2012 PDF Tesis ENG - Inglés América Latina Colfuturo © Derechos reservados del autor http://babel.banrepcultural.org/cdm/ref/collection/p17054coll23/id/411
institution Biblioteca Virtual Banco de la República - Colecciones digitales
collection Custom
language Desconocido (Unknown)
topic Cultura; Fusiones y adquisiciones Cross-Border
Ciencias sociales; Ciencias sociales / Economía
spellingShingle Cultura; Fusiones y adquisiciones Cross-Border
Ciencias sociales; Ciencias sociales / Economía
Guardiola Fernández, Daniel
Cross-border M&A and the impact of cultural differences. The Latin American case
description Over the last decade, the Latin American Cross-Border M&A activity experienced a significant increase in terms of volume, value, and complexity. Between 2002 and 2011, 1483 M&A announcements involving Latin American bidders were found in this study. From this sample 344 were targeting companies in a foreign country. With the purpose of measuring to what extent CB-M&A can be a catalyst of value creation or destruction for the bidder in the short-term, the event study methodology was employed in a sample of 47 observations. I found that on average, the market reaction is positive after the announcement, leading to the short-term value creation for the Latin American acquirers. Regarding the allocation of investments in terms of geographies, the outcome shows that bidders tend to favor countries with similar cultural values and geographically close. The Hofstede’s cultural dimensions along with additional factors such as language, legal origins, and religion were analyzed in order to evaluate to what degree cultural differences affect cross-border acquisitions. However much the results are not statistically significant, it appears that cultural differences tend to have a negative effect on the bidder’s short-term performance.
format Trabajo de grado (Bachelor Thesis)
author Guardiola Fernández, Daniel
author_facet Guardiola Fernández, Daniel
author_sort Guardiola Fernández, Daniel
title Cross-border M&A and the impact of cultural differences. The Latin American case
title_short Cross-border M&A and the impact of cultural differences. The Latin American case
title_full Cross-border M&A and the impact of cultural differences. The Latin American case
title_fullStr Cross-border M&A and the impact of cultural differences. The Latin American case
title_full_unstemmed Cross-border M&A and the impact of cultural differences. The Latin American case
title_sort cross-border m&a and the impact of cultural differences. the latin american case
publishDate 2012
url http://babel.banrepcultural.org/cdm/ref/collection/p17054coll23/id/411
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