Interorganizational imitation and payment mode decisions in cross-border acquisitions

Chhabra, Ankita; Popli, Manish

Abstract

Acquiring firm imitates the payment method decisions made by prior foreign acquirers targeting the same host country in cross-border acquisitions. Information asymmetry and bounded rationality induces acquirers to imitate the decisions of other foreign firms in the similar context. Mimetic behavior of the firms is more salient when the acquiring firm belongs to a country with high uncertainty avoidance cultural attribute and when institutional uncertainty is high in host country. The hypotheses are tested using binary logistic regression on a dataset of 1,136 cross-border acquisitions done by a group of seven countries during 2000–2010.

Citation

Chhabra, A., & Popli, M. (2018). Interorganizational imitation and payment mode decisions in cross-border acquisitions. Strategic Change, 27(1), 43-51. https://doi.org/10.1002/jsc.2179

• Journal Article Type: Article
• Acceptance Date: Dec 20, 2017
• Online Publication Date: Jan 23, 2018
• Publication Date: 2018-01
• Deposit Date: Sep 15, 2022
• Journal: Strategic Change
• Print ISSN: 1086-1718
• Electronic ISSN: 1099-1697
• Publisher: Wiley
• Peer Reviewed: Peer Reviewed
• Volume: 27
• Issue: 1
• Pages: 43-51
• DOI: https://doi.org/10.1002/jsc.2179
• Keywords: Mergers and acquisitions, payment mode, interorganizational imitation, uncertainty avoidance
• Public URL: http://researchrepository.napier.ac.uk/Output/2891444