National Culture and Takeover Contest Outcomes
Autor: | Timo Korkeamäki, Karl Felixson, Magnus Blomkvist |
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Přispěvatelé: | Audencia Business School, Hanken School of Economics |
Jazyk: | angličtina |
Rok vydání: | 2018 |
Předmět: |
Economics and Econometrics
ta511 050208 finance 05 social sciences Control (management) National culture Sample (statistics) CONTEST [SHS.ECO]Humanities and Social Sciences/Economics and Finance Outcome (game theory) humanities Cultural diversity 0502 economics and business Mergers and acquisitions Economics Demographic economics 050207 economics ta512 human activities Finance ComputingMilieux_MISCELLANEOUS Overconfidence effect |
Zdroj: | Financial Review Financial Review, In press, 53 (3), pp.605-625. ⟨10.1111/fire.12158⟩ |
DOI: | 10.1111/fire.12158⟩ |
Popis: | We examine the effects of cultural differences on the outcome of takeover contests. Our main focus is on individuality, which we posit to have an effect on firm behavior in international takeover contests. In a sample of international acquisitions with bidders from multiple countries, we find that individuality positively relates to the probability of placing the winning bid. We further find that takeover contest winners with high individuality scores experience lower announcement returns. Our results are consistent with the literature that links individuality to overconfidence. Our evidence suggests that firms should control culture‐related behavioral biases in their mergers and acquisitions activity. |
Databáze: | OpenAIRE |
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