Linguistic distance and mergers and acquisitions: Evidence from China

doi:10.1016/j.pacfin.2018.04.002

CORC > 上海财经大学 > 上海财经大学

	Linguistic distance and mergers and acquisitions: Evidence from China
	Li, Lu 1; Duan, Yang 2; He, Yuqian 3; Chan, Kam C.4
刊名	PACIFIC-BASIN FINANCE JOURNAL
	2018-06
卷号	49 页码:81-102
关键词	Cultural distance Linguistic distance Mergers and acquisitions
ISSN号	0927-538X
DOI	10.1016/j.pacfin.2018.04.002
英文摘要	We use a new measure of linguistic distance and examine how it relates to the wealth effects of mergers and acquisitions using a sample of acquisitions in China. Linguistic distance between the acquirer and the target is constructed based on the map that defines the difference in level between any pair of languages in China. We find a significant negative relationship between the linguistic distance and the acquirer's abnormal return around the announcement. The findings are robust to different model specifications, institutional differences in local financial development, and after accounting for multicollinearity between linguistic and geographical distances and the potential social networks between acquirers and targets. The negative effect of linguistic distance is more pronounced when: (1) the deals are not in high-tech industries, (2) acquirers are not from Putonghua popular areas, and (3) acquirers are not from a linguistically diverse area. Further analysis suggests that top management's dialect experience is valuable to the acquirer's shareholders in mergers and acquisitions. Our findings suggest that cultural distance matters in corporate decisions.
WOS研究方向	Business & Economics
语种	英语
出版者	ELSEVIER SCIENCE BV
WOS记录号	WOS:000446269700006
内容类型	期刊论文
源URL	[http://10.2.47.112/handle/2XS4QKH4/598]
专题	上海财经大学
通讯作者	Duan, Yang
作者单位	1.Shanghai Int Studies Univ, Shanghai, Peoples R China; 2.Hong Kong Baptist Univ, Kowloon, Hong Kong, Peoples R China; 3.Shanghai Univ Finance & Econ, Shanghai, Peoples R China; 4.Western Kentucky Univ, Bowling Green, KY 42101 USA
推荐引用方式 GB/T 7714	Li, Lu,Duan, Yang,He, Yuqian,et al. Linguistic distance and mergers and acquisitions: Evidence from China[J]. PACIFIC-BASIN FINANCE JOURNAL,2018,49:81-102.
APA	Li, Lu,Duan, Yang,He, Yuqian,&Chan, Kam C..(2018).Linguistic distance and mergers and acquisitions: Evidence from China.PACIFIC-BASIN FINANCE JOURNAL,49,81-102.
MLA	Li, Lu,et al."Linguistic distance and mergers and acquisitions: Evidence from China".PACIFIC-BASIN FINANCE JOURNAL 49(2018):81-102.