Extraversion, individualism and M&A activities

Alex W.H. Chan and Hoi Yan Cheung

International Business Review, 2016, vol. 25, issue 1, 356-369

Abstract: Previous studies have documented that variations in economic and business environments can explain the patterns of mergers and acquisitions (M&A) across different countries. We investigated these patterns from a psychological perspective and found that the personality trait of extraversion and the cultural dimension of individualism (IDV) also affected the patterns of M&A activities across countries. Our results suggest that the psychological characteristics of corporate decision makers play a very important role in the M&A decision-making process, even after controlling for external economic and business factors. Furthermore, IDV significantly mediates the relationship between extraversion and M&A activities. This result provides support for the reverse causation hypothesis.

Keywords: Mergers and acquisitions; Hofstede's cultural dimensions; Individualism; Extraversion; Reverse causation hypothesis (search for similar items in EconPapers)
JEL-codes: G02 G34 Z1 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0969593115300044
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:iburev:v:25:y:2016:i:1:p:356-369

Ordering information: This journal article can be ordered from
http://www.elsevier.com/wps/find/journaldescription.cws_home/133/bibliographic
http://www.elsevier. ... me/133/bibliographic

DOI: 10.1016/j.ibusrev.2015.05.011

Access Statistics for this article

International Business Review is currently edited by P. Ghauri

More articles in International Business Review from Elsevier
Bibliographic data for series maintained by Catherine Liu ().