Acquirer’s corporate reputation in cross-border acquisitions: the moderating effect of country image

2018 ◽  
Vol 27 (7) ◽  
pp. 858-870 ◽  
Author(s):  
Michela Matarazzo ◽  
Giulia Lanzilli ◽  
Riccardo Resciniti
Keyword(s):  
Corporate Reputation ◽  
Country Image ◽  
Target Firm ◽  
Content Type ◽  
Repurchase Intentions ◽  
Cross Border ◽  
Acquiring Firms ◽  
Good Reputation ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this paper is to investigate whether, in the context of a cross-border acquisition, the acquirer’s country image (CI) could moderate the relationship between the acquirer’s corporate reputation (CR) and consumers’ repurchase intentions towards the products of the post-acquisition target. Design/methodology/approach The authors examined the roles played by the acquirer’s CR and the acquirer’s CI on consumer behaviour by considering an Italian target firm with a high reputation and comparing four foreign acquiring firms with different combinations of CR (poor/good) and CI (high/low). Findings It was found that both CR and CI have a significant impact on Italian consumers’ intention to repurchase the products of the post-acquisition target. Furthermore, the results show a greater increase in consumers’ repurchase intentions when a good reputation of the acquirer is paired with a high CI for the acquirer, but a high CI cannot compensate for a poor CR. Originality/value The research investigates, in the context of cross-border acquisitions (CBAs), the impact of the acquirer’s CR and the acquirer’s CI on the host country consumers’ repurchase intentions after the CBA, which has not previously been thoroughly examined. It can help managers to understand the conditions under which CBAs will be favourably evaluated.

Consumers’ reactions to cross-border acquisitions

2019 ◽  
Vol 122 (2) ◽  
pp. 655-677
Author(s):  
Riccardo Resciniti ◽  
Michela Matarazzo ◽  
Gabriele Baima
Keyword(s):  
Experimental Design ◽  
Corporate Reputation ◽  
Design Methodology ◽  
Consumer Perceptions ◽  
Psychic Distance ◽  
Target Firm ◽  
Content Type ◽  
Cross Border ◽  
Acquiring Firms

Purpose The purpose of this paper is to focus on consumers’ reactions to cross-border acquisitions (CBA) by exploring the role of consumer perceptions of the psychic distance between the country of the acquirer and that of the target firm when the acquiring corporation has a good or poor reputation. Design/methodology/approach A 2×2 experimental design which manipulated psychic distance and acquirer’s corporate reputation was conducted in Italy. The study considers an Italian food target firm and compares four foreign acquiring firms with different combinations of corporate reputation (good/poor) and psychic distance to Italy (small/large). Findings The authors found that the degree of psychic distance between the countries of the acquiring and targeted firms was inversely related to Italian consumers’ intentions to repurchase the products of the post-acquisition target, and unrelated to the acquirer’s corporate reputation. Originality/value This is the first study focusing on psychic distance in the context of CBA, especially from the perspective of consumer behavior, which can help to better understand certain negative reactions toward the acquisition of a business.

Cause-related marketing for successful cross-border post-acquisition performance

2019 ◽  
Vol 37 (4) ◽  
pp. 695-712 ◽  
Author(s):  
Michela Matarazzo ◽  
Riccardo Resciniti ◽  
Biagio Simonetti
Keyword(s):  
Negative Influence ◽  
Positive Influence ◽  
Target Firm ◽  
Content Type ◽  
Repurchase Intentions ◽  
Cross Border ◽  
Cause Related Marketing ◽  
The Impact ◽  
Moderating Role

Purpose Building on the scant literature on cross-border acquisitions (CBAs) in the consumer perspective, the purpose of this paper is to investigate the impact of the acquirer’s cause-related marketing (CRM) on consumers’ repurchase intentions of the products of the post-acquisition target. In addition, the study aims at analyzing the moderating role of acquirer’s CRM on the relationship between corporate ability (CA) and country image (CI) on consumers’ repurchase intentions of the products of the post-acquisition target. Design/methodology/approach Drawing on a sample of Italian consumers (n=351), the authors examined the roles played by the acquirer’s CRM on consumer behaviour by considering an Italian target firm with a high reputation and comparing eight foreign acquiring firms with different combinations of CRM (poor/good), CA (poor/good) and CI (high/low). Findings The authors found that CRM, CA as well as CI have a significant impact on Italian consumers’ intention to repurchase the products of the post-acquisition target. Furthermore, it is shown that good CRM reduces the negative influence of a poor CA and a low CI on post-acquisition repurchase intentions and strengthen the positive influence, thus confirming the moderating role of CRM. Originality/value The research investigates, in the context of CBAs, the impact of the acquirer’s CRM on the host country consumers’ repurchase intentions after the CBA, which has not previously been examined. It can help managers to understand the conditions under which CBAs will be favourably evaluated.

The impact of organizational position level and cultural flow direction on the relationship between cultural intelligence and expatriate cross-border adaptation

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ying Zhang ◽  
Yuran Li ◽  
Mark Frost ◽  
Shiyu Rong ◽  
Rong Jiang ◽  
...  
Keyword(s):  
Cultural Intelligence ◽  
Flow Direction ◽  
Power Distance ◽  
Cultural Adjustment ◽  
Data Set ◽  
Content Type ◽  
Cross Border ◽  
Organizational Position ◽  
The Impact ◽  
The Relationship

PurposeThis paper aims to examine the critical role played by cultural flow in fostering successful expatriate cross-border transitions.Design/methodology/approachThe authors develop and test a model on the interplay among cultural intelligence, organizational position level, cultural flow direction and expatriate adaptation, using a data set of 387 expatriate on cross-border transitions along the Belt & Road area.FindingsThe authors find that both organizational position level and cultural flow moderate the relationship between cultural intelligence and expatriate adaptation, whereby the relationship is contingent on the interaction of organizational position status and assignment directions between high power distance and low power distance host environments.Originality/valuePrevious research has shown that higher levels of cultural intelligence are positively related to better expatriate adaptation. However, there is a lack of research on the effect of position difference and cultural flow on such relationship. Our study is among the first to examine how the interaction between cultural flow and organizational position level influences the cultural intelligence (CI) and cultural adjustment relationship in cross-cultural transitions.

Added cultural distance and ownership in cross-border acquisitions

2020 ◽  
Vol 27 (3) ◽  
pp. 487-510 ◽  
Author(s):  
Hyun Gon Kim ◽  
Ajai S. Gaur ◽  
Debmalya Mukherjee
Keyword(s):  
Cultural Distance ◽  
Geographic Distance ◽  
Target Firm ◽  
Content Type ◽  
Cross Border ◽  
Focal Firm ◽  
Final Sample ◽  
The Relationship ◽  
Financial Securities ◽  
Different Sources

PurposeAs multinational companies enter different countries, the extent of cultural unfamiliarity they face depends on their most recent entry. We examine this pattern of added cultural distance between a newly entered target country and the closest previous one and its effect on ownership decisions in each cross-border acquisition (CBA). We also examine the combined effect of added cultural distance and time between successive acquisitions on such decisions.Design/methodology/approachThe sample came from the Thomson Financial Securities Data Corporation (SDC) Platinum database, which spans different source and target countries for a 25-year period (1980–2014). We collected firm- (acquirer and target), industry-, country-, and transaction-level variables from SDC. After merging information from the different sources, the final sample comprised 10,423 CBA observations from 138 target countries.FindingsOur findings reveal that the ownership share decision is affected negatively by added cultural distance but positively by the time between two successive acquisitions. In addition, prior ownership and geographic distance moderate the relationship between added cultural distance and ownership in CBAs.Practical implicationsOur findings suggest that MNCs' managers who consider CBAs need to carefully examine closest previous target information and CBA experience, rather than focusing on direct cultural distance between the focal firm and target firm. Additionally, they should also consider the relevance of key contingency factors.Originality/valueWe disentangle the effects of added cultural distance on CBA ownership decisions and explore the boundary conditions of this relationship.

The relationship between corporate social responsibility and corporate reputation in a turbulent environment: Spanish evidence of the Ibex35 firms

2015 ◽  
Vol 15 (4) ◽  
pp. 563-575 ◽  
Author(s):  
José Luis Fernández Sánchez ◽  
Ladislao Luna Sotorrío ◽  
Elisa Baraibar Diez
Keyword(s):  
Corporate Social Responsibility ◽  
Financial Crisis ◽  
Social Responsibility ◽  
Corporate Reputation ◽  
Content Type ◽  
Current Financial Crisis ◽  
Corporate Social ◽  
The Impact ◽  
The Relationship ◽  
Positive Effect

Purpose – The purpose of this study is to provide more knowledge about the model to generate reputation and its relationship in the long term with companies’ strategy of social responsibility. Particularly, research is done to test whether there is a positive effect of firms’ social behaviour (corporate social responsibility [CSR]), analysing differences of intensity and consistency, on their corporate reputation (CR) and whether the current financial crisis is a factor that has changed the relationship between both variables (moderator factor). Design/methodology/approach – This study uses a sample of 26 Spanish large firms of the Ibex35 index and covers an eight-year period from 2004 to 2011. To test the hypotheses of this research, a fixed-effects model was estimated using moderating regression analysis. Findings – The results obtained show that, for the Spanish Ibex35 companies, CSR practices according to their consistency have a significant positive effect on CR and in turbulent environments, as in the current financial crisis, it has had a significant positive influence on the CSR-CR relationship. Originality/value – Although a substantial number of empirical studies have examined the relationship between firms’ strategy and their performance, only a few of them have analysed the impact of the external environment on this relationship, whereby there is a need for longitudinal studies with different economic scenarios to achieve better knowledge of the CSR–CR relationship.

Do frequent acquirers outperform in cross-border acquisitions? A study of Indian companies

2020 ◽  
Vol 30 (4) ◽  
pp. 491-514
Author(s):  
Samta Jain ◽  
Smita Kashiramka ◽  
P.K. Jain
Keyword(s):  
Operating Performance ◽  
Financial Statements ◽  
Acquisition Performance ◽  
Content Type ◽  
Acquisition Period ◽  
Cross Border ◽  
Acquiring Firms ◽  
The Impact ◽  
First Time

Purpose The purpose of this paper is to examine the impact of cross-border acquisitions (CBAs) on the financial and operating performance of acquiring firms from emerging economies in the long-term; the acquiring firms have been segregated into frequent (multiple) and first-time (single) acquirers based on their prior cross-border experience. The intent is to identify if overseas activities bring over and above advantage to multiple acquirers in terms of enhanced financial synergies and reduced costs, motivating them to engage in sequential international transactions. Design/methodology/approach The paper analyses the impact of CBAs announced and completed during 2004–2013 by Indian companies listed on the NIFTY 500 index. The post-acquisition financial and operating performance of Indian cross-border acquirers has been compared with their pre-acquisition performance. The average performance over three-years immediately preceding the acquisition year constitutes the benchmark for the post-acquisition performance. The post-acquisition period includes a year of integration followed by three successive post-integration years. Therefore, in operational terms, the research period extends from 2001–2017. The long-term performance of frequent (multiple) and first-time (single) Indian acquirers has been investigated comprehensively using a set of 16 financial ratios. The performance has been assessed using the secondary data collected from financial statements of acquiring companies; the financial statements and the list of CBAs by Indian companies have been obtained from Thomson Reuter’s EIKON database. Findings The financial and operating performance of frequent as well as first-time acquirers have depicted a similarly deteriorating trend during the post-acquisition period. These findings indicate that the international expansion of Indian companies is not guided by synergy creation potential and may be pushed by the overconfidence or over-optimism and agency conflicts of managers. This, perhaps, indicates that firms are being imprudent in investing free cash flows available with them. Originality/value The study is the first of its kind. No study, to the best of the authors’ knowledge, has analysed the performance of acquiring firms by segregating them into frequent and first-time acquirers using accounting measures of performance. More so, an extensive analysis of the long-term financial and operating performance of acquiring companies is rare to come across in the extant literature.

Cross-border mergers and acquisitions: links between acquiring firm capabilities and resources and target country location

2020 ◽  
Vol 28 (3) ◽  
pp. 355-379
Author(s):  
Ronaldo Parente ◽  
Keith James Kelley ◽  
Yannick Thams ◽  
Marcelo J. Alvarado-Vargas
Keyword(s):  
Target Firm ◽  
Firm Capabilities ◽  
Content Type ◽  
Cross Border ◽  
Acquiring Firms ◽  
Target Firms ◽  
Innovative Capabilities ◽  
Eclectic Paradigm ◽  
Country Selection ◽  
Target Country

Purpose Drawing upon the eclectic paradigm and the regulative dimension of institutional distance theory, it is posited that to understand a firms’ cross-border merger and acquisition (CBMA) location choices, it is critical to examine the acquirers’ ownership advantages. Design/methodology/approach Using a sample of CBMAs undertaken by US firms from 1999 to 2015, the paper explores the extent to which acquiring firm ownership advantages – financial and innovation capabilities – influence target firm country selection in relation to regulative distance. Findings It is shown that acquiring firms with greater innovative capabilities are likely to choose target firms in nations with less regulative distance from their home market; whereas firms with greater financial capabilities target firms in more distant nations. Originality/value This paper builds on the important research on CBMA activity, focusing on the largely neglected pre-acquisition resources in relation to the regulative distance between target firms and the acquirer.

How sales promotion display affects customer shopping intentions in retails

2020 ◽  
Vol 48 (12) ◽  
pp. 1337-1355 ◽  
Author(s):  
Mohammadbagher Gorji ◽  
Sahar Siami
Keyword(s):  
Product Quality ◽  
Sales Promotion ◽  
Price Fairness ◽  
Cross Sectional ◽  
Content Type ◽  
Repurchase Intentions ◽  
Perceived Product Quality ◽  
Cross Sectional Design ◽  
The Impact ◽  
The Relationship

PurposeThe purpose of this paper is to examine the impact of sales promotion display on customer intentions to purchase and repurchase, focusing on the moderating roles of perceived product quality and price fairness.Design/methodology/approachThis study employs a descriptive, quantitative, non-experimental research method using a cross-sectional design with a self-administered questionnaire. In total, 415 department store customers responded to the survey through an online research panel provider in Australia.FindingsThe results indicated that sales promotion display significantly affects the purchase and repurchase intentions. The findings also highlight the moderating role of perceived product quality and price fairness on customer shopping intentions. Lastly, it is confirmed that the joint moderating effects of perceived product quality and price fairness in the relationship between sales promotion display, purchase and repurchase intentions are significant.Practical implicationsBased on the study findings, managers could drive customer purchase and repurchase intentions using suitable visual objects in sales promotion and their appropriate in-store placement.Originality/valueThe present study introduced sales promotion display as a new dimension of store physical environment. This is the first study to investigate the relationship between sales promotion display and customer shopping intentions and incorporates customers' cognitive perceptions of price and quality in the conditioned effect of sales promotion display on shopping intentions. Moreover, this study brings up new insight into retailing literature by applying the classical conditioning theory in examining the links between sales promotion display and customer shopping intentions.

The Impact Of CSR Communication On The Company’s Reputation

2021 ◽  
Vol 38 (4) ◽  
Author(s):  
Nada Soudi ◽  
Chams Eddoha Mokhlis
Keyword(s):  
Corporate Reputation ◽  
Communication Process ◽  
Communication Plan ◽  
Csr Communication ◽  
Digital World ◽  
Good Reputation ◽  
The One ◽  
Lack Of Commitment ◽  
The Impact ◽  
The Relationship

In today's digital world, the relationship between brands and consumers have changed. Social Medias offer consumers and brands multiple opportunities of interactions. Consumers, who become more active in the communication process, do not hesitate to express themselves about brands and companies. This situation pushes companies to reinvent their relationship with the clients and adapt their offers to fulfill their needs. Furthermore, Dawkins (2004) suggested that an effective CSR communication plan is the one that depends on a clear strategy that assesses the risks taken by the brand, and delivers precise messages to the various stakeholders. However, the impact of CSR communication should not be overestimated. Hence the choice of our following problematic: "What is the impact of CSR communication on the reputation of the company?"This paper addresses a review of two pillars; CSR communication and corporate reputation with focus on e-reputation. The interception between these two paradigms will clarify the combining concept of CSR and Reputation.Findings of this review reveal that the CSR affects reputation, the more committed is the company on sustainable development, the more it wins a good reputation, and finally, the impact of a lack of commitment on the company's reputation is bigger than the communication on CSR initiatives.

scholarly journals An empirical analysis of the relationship between the information quality of CSR reporting and reputation among publicly traded companies in Spain

2017 ◽  
Vol 30 (1) ◽  
pp. 87-107 ◽  
Author(s):  
Andrea Pérez ◽  
Carlos Lopez-Gutierrez
Keyword(s):  
Stock Market ◽  
Corporate Reputation ◽  
Information Quality ◽  
Management Systems ◽  
Content Type ◽  
Csr Reporting ◽  
The Impact ◽  
The Relationship ◽  
Spanish Stock Market

Purpose Supported by the principles of the legitimacy theory, the purpose of this paper is to explore the relationship that exists between the information quality of the corporate social responsibility (CSR) reporting provided by the most liquid companies operating in the Spanish Stock Market and their corporate reputation. Design/methodology/approach Three regression models are tested with panel data collected for a sample of the 35 most liquid companies operating in the Spanish Stock Market between 2004 and 2014. Findings The findings show that two axes of information quality (i.e. content and management systems) should be necessarily controlled by companies in order to improve their corporate reputation through their CSR reporting. The content axis refers to the compliance of CSR reports with the provision of qualitative, quantitative, and evaluative information concerning the impacts of the CSR of the company on society and the environment. The management systems axis refers to the compliance of CSR reports with the disclosure of details about the policies, plans, and actions that companies implement to assure an effective management of CSR initiatives. Originality/value Previous literature exploring the relationship between corporate reporting and reputation has frequently focused on either the impact of the quantity of financial and CSR information reported by companies and the role of information quality, but only in reference to a number of specific themes (environment, customers) and not to the full range of information covered by CSR reports. The authors of this paper extend on previous academic literature by empirically evaluating the relationship between two dimensions of the information quality of CSR reporting (content and management systems) and the corporate reputation of companies operating in the Spanish Stock Market.

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