Cross-border acquisition performance insights from predictive modeling

Camilla Jensen, Peter Zamborsky, David R. King

Research output: Chapter in Book/Report/Conference proceedingBook chapterResearchpeer-review

Abstract

Cross-border acquisitions (CBA) are a common tool of multinational firms, but what drives CBA performance remains inconclusive. We aggregate research on CBA performance to identify impacts of cultural distance and home and host country effects using a relatively new approach, predictive modeling, to classify research to identify patterns with machine learning. Predictive modeling enables considering effects not traditionally captured by meta-analysis and it offers different interpretations. We find an overall positive impact of cultural distance on CBA performance. However, we also find important host and home country effects, and the home country setting of acquirers may be as or more important than host and distance effects. As a result, there are questions surrounding the usefulness of cultural distance, and CBA research needs to consider home country effects.
Original languageEnglish
Title of host publicationAcquisitions and Corporate Strategy : Alliances, Performance, and Divestment
EditorsDavid R. King
Number of pages20
Place of PublicationNew York and London
PublisherRoutledge
Publication date1 Jul 2022
Edition1
Pages157-176
Chapter7
ISBN (Print)9781032036366 (hbk), 9781032036373 (pbk)
ISBN (Electronic)9781003188308
DOIs
Publication statusPublished - 1 Jul 2022
SeriesRoutledge Research in Strategic Management
Volume7

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