Formal Institutional Distance and cross-border M&A-Contract Ineffectiveness: Moderating Role of Advisory Organizations
Advisory organizations on cross-border mergers and acquisition deals performed as advisory governance can fill the distance between the formal institutional environment of host and home economies. This study examined the formal institutional distance between emerging and developed economies and the...
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| Format: | Article |
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International Research Alliance for Sustainable Development - iRASD
2022-01-01
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| Series: | iRASD Journal of Management |
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| Online Access: | https://www.journals.internationalrasd.org/index.php/jom/article/view/466 |
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| author | Nadia Hanif Abida Hafeez Noman Arshed |
| author_facet | Nadia Hanif Abida Hafeez Noman Arshed |
| author_sort | Nadia Hanif |
| collection | DOAJ |
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Advisory organizations on cross-border mergers and acquisition deals performed as advisory governance can fill the distance between the formal institutional environment of host and home economies. This study examined the formal institutional distance between emerging and developed economies and their role in M&A initial contract ineffectiveness by expanding the phenomena of the pre-completion stage of M&A-contracts. We examine our key questions using data of 832 cross-border M&A-contracts of developed economies’ firms with emerging economies’ firms in the international business high-technology industry from 1984-2011. We find that formal institution distance explains part of the variation in the ineffectiveness of M&A-contracts. Further the gain from the external capabilities provided by advisory organizations helps in reducing the effect of institutional distance on the M&A-contract ineffectiveness.
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| format | Article |
| id | doaj-art-db149fd5d3d94b399102320a84c8f358 |
| institution | OA Journals |
| issn | 2709-8443 2709-8451 |
| language | English |
| publishDate | 2022-01-01 |
| publisher | International Research Alliance for Sustainable Development - iRASD |
| record_format | Article |
| series | iRASD Journal of Management |
| spelling | doaj-art-db149fd5d3d94b399102320a84c8f3582025-08-20T02:27:31ZengInternational Research Alliance for Sustainable Development - iRASDiRASD Journal of Management2709-84432709-84512022-01-014110.52131/jom.2022.0401.0057Formal Institutional Distance and cross-border M&A-Contract Ineffectiveness: Moderating Role of Advisory OrganizationsNadia Hanif0Abida Hafeez1Noman Arshed2University of EducationAssistant Professor, Department of Economics and Business Administration, Division of Management and Administrative Science, University of Education, Lahore.Assistant Professor, Department of Economics and Business Administration, Division of Management and Administrative Science, University of Education. Advisory organizations on cross-border mergers and acquisition deals performed as advisory governance can fill the distance between the formal institutional environment of host and home economies. This study examined the formal institutional distance between emerging and developed economies and their role in M&A initial contract ineffectiveness by expanding the phenomena of the pre-completion stage of M&A-contracts. We examine our key questions using data of 832 cross-border M&A-contracts of developed economies’ firms with emerging economies’ firms in the international business high-technology industry from 1984-2011. We find that formal institution distance explains part of the variation in the ineffectiveness of M&A-contracts. Further the gain from the external capabilities provided by advisory organizations helps in reducing the effect of institutional distance on the M&A-contract ineffectiveness. https://www.journals.internationalrasd.org/index.php/jom/article/view/466Advisory GovernanceContract IneffectivenessDeveloped EconomiesEmerging EconomiesFormal InstitutionsMergers and Acquisitions |
| spellingShingle | Nadia Hanif Abida Hafeez Noman Arshed Formal Institutional Distance and cross-border M&A-Contract Ineffectiveness: Moderating Role of Advisory Organizations iRASD Journal of Management Advisory Governance Contract Ineffectiveness Developed Economies Emerging Economies Formal Institutions Mergers and Acquisitions |
| title | Formal Institutional Distance and cross-border M&A-Contract Ineffectiveness: Moderating Role of Advisory Organizations |
| title_full | Formal Institutional Distance and cross-border M&A-Contract Ineffectiveness: Moderating Role of Advisory Organizations |
| title_fullStr | Formal Institutional Distance and cross-border M&A-Contract Ineffectiveness: Moderating Role of Advisory Organizations |
| title_full_unstemmed | Formal Institutional Distance and cross-border M&A-Contract Ineffectiveness: Moderating Role of Advisory Organizations |
| title_short | Formal Institutional Distance and cross-border M&A-Contract Ineffectiveness: Moderating Role of Advisory Organizations |
| title_sort | formal institutional distance and cross border m a contract ineffectiveness moderating role of advisory organizations |
| topic | Advisory Governance Contract Ineffectiveness Developed Economies Emerging Economies Formal Institutions Mergers and Acquisitions |
| url | https://www.journals.internationalrasd.org/index.php/jom/article/view/466 |
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