Cultural foundations of corporate control: an empirical enquir

Ali Bayat (7196165)

Peter Kawalek (4101403)

English

Loughborough University Institutional Repository

Cultural Foundations of Corporate Control:An Empirical EnquiryAli Bayat, Peter KawalekAlliance Manchester Business SchoolAbstractThis paper argues for the importance of culture for corporate governance practices.We utilise both the contemporary and early patterns in settlement of Scots-Irish inthe United States to study the effect of honour culture on the defensive behaviour oftarget firms in corporate control contests. Honour culture is characterised by reputationmaintenance and defence. We compare the behaviour of target firms in places withvarying degree of honour culture. We empirically examine if firms located in placeswith an honour culture are more resistant to hostile takeovers when becoming a target.We find that these firms show more resistance to hostile takeovers when becominga target, and are more likely to win the contests. Beyond the existing explanationsfor target firm resistance, this study sheds light on how cultural dynamics can shapetakeover resistance and corporate control.Keywords : Culture of Honour, Corporate Governance, Corporate Control, Hostile Takeovers,Takeover Resistance

Cultural foundations of corporate control: an empirical enquiry [Abstract]

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Cultural foundations of corporate control: an empirical enquiry [Abstract]

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