TY - JOUR TI - The effects of added distance on ownership decision and market reaction in cross-border acquisitions DO - https://doi.org/doi:10.7282/T3ZC85TF PY - 2017 AB - In this dissertation, I argue that as multinational companies (MNCs) enter different countries, the extent of cultural that they face is likely to depend on their most recent entry. Based on this, I examine the pattern of adding cultural distance between newly entered target country and the closest previous one, and its effect on acquiring firms’ ownership decision and shareholder market reactions to each cross-border acquisition (CBA) announcement. Further, I examine the effect of time in adding cultural distance between successive acquisitions on ownership decision in CBAs and market reaction to CBA announcement. I test the arguments on a sample of 10,423 CBAs involving U.S. acquirers and targets in 138 countries during 1980 - 2014 time period. This study finds that added cultural distance and time in adding cultural distance significantly influence the ownership share decision and market reaction to CBA announcement. In addition, an acquirer’s prior ownership, CBA experience and geographic distance moderate the relationship between the added distance and the ownership decision in CBAs and market reaction to CBA announcement. KW - Management KW - Consolidation and merger of corporations LA - eng ER -