This paper seeks to verify whether Cultural Distance affects the performance of Indian companies that are seeking profitability through cross border Mergers and Acquisitions (M&As). Despite the fast growth rate of some developing economies, most research in cultural differences as an explanatory variable of merger performance is limited to companies from the developed countries. Thus, from the research standpoint, a study of the impact of cultural differences on a company based in a developing country is an interesting proposition. We have employed multiple regression analysis in explaining the effect of cultural differences on the performance of an Indian company after netting out the effect of other variables, such as year of acquisition and type of industry, that are considered significant in the explanation of performance of a company post merger. The findings indicate that cultural difference, as an explanatory variable of the post acquisition performance, is not a significant factor affecting performance of the Indian companies.authorsversionpublishe
