The effect of cultural distance on post-M&A performance in Dutch acquiring firms

This paper researched a well-studied subject: the effect of cultural distance on post-M&A performance. However, the true impact of this effect is unclear due to contradicting results in prior research. To study this phenomenon an ordinary least squares regression analyses is conducted on a sample of 112 cross-border mergers and acquisitions that took place between 1993 and 2012. The empirical findings in this research indicate that cultural distance does not have a significant impact on post-merger and acquisition performance and should therefore not be taken into account when management decisions are being made about a cross-border merger or acquisition by Dutch companies.