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Interorganizational imitation and payment mode decisions in cross-border acquisitions

Chhabra, Ankita; Popli, Manish

Authors

Manish Popli



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.

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
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