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Cultural Due Diligence In M&A. Importance Of Soft Risks Factors

Author

Listed:
  • WARTER, Iulian

    (Center for Socio-Economic Studies and Multiculturalism, Iasi, Romania)

  • WARTER, Liviu

    (Center for Socio-Economic Studies and Multiculturalism, Iasi, Romania)

Abstract

During the last decades, the corporate world has witnessed a significant rise in the number of cross border mergers and acquisitions (M&As). In cross border M&As, not only different corporate cultures collide, but also different professional and national cultures. The purpose of Cultural Due Diligence (CDD) is to get a coherent image of the intercultural challenges of the M&A in order to be aware of the intercultural risks and opportunities. This article aims to reveal the perception of managers involved in the preM&A stage on the soft risks factors that need to be investigated during CDD. This study proposes an appraisal of the most important intercultural issues that need to be considered in M&A. Our contribution to the intercultural aspects of M&A literature consists in improving the current understanding of Cultural Due Diligence content

Suggested Citation

  • WARTER, Iulian & WARTER, Liviu, 2017. "Cultural Due Diligence In M&A. Importance Of Soft Risks Factors," Annals of Spiru Haret University, Economic Series, Universitatea Spiru Haret, vol. 17(2), pages 38-61.
    • Handle: RePEc:ris:sphecs:0257
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    References listed on IDEAS

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    Cited by:

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    2. Yulia Vertakova & Inga Vselenskaya & Vladimir Plotnikov, 2021. "Mergers and Acquisitions Risk Modeling," JRFM, MDPI, vol. 14(9), pages 1-24, September.

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    More about this item

    Keywords

    mergers and acquisitions (M&As); cultural due diligence; national culture; organizational culture; professional culture;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • Z19 - Other Special Topics - - Cultural Economics - - - Other

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