| Summary: | Abstract
A large amount of literature that has shed light on the nexus between cultural distances and corporate performance in international mergers and acquisitions (M&A) indicates inconclusive results, based on western perspectives. It is surprising that literatures pay little attention to the overseas mergers launched by Chinese enterprises, which come from an emerging potential market and have invested overseas frequently in recent years. To test the impacts of cultural differences on the performance of Chinese companies, I establish a hypothesis and set up a model regarding the causality of the two aspects, based on the integration of current relevant theoretical researches. The results of a quantitative study with a sample of 231 Chinese companies show that the enormous cultural difference between Chinese enterprises and foreign companies has hindered their communication and cooperation, which is not conducive to the Chinese companies as the acquirers to obtain the expected benefits. Besides, the limitation and implications are provided following the result analysis.
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