Religious similarity in mergers and acquisitions
作者: Dai, YH; Huang, X; Tan, WQ; Yao, DF
单位: 华中科技大学经济学院 香港浸会大学工商管理学院管理、市场与信息系统学系 香港教育大学社会科学与政策研究学系 格里菲斯大学会计、金融与经济学院
期刊：Journal of International Financial Markets Institutions & Money
Abstract: This study explores the impact of regional religious similarity on merger and acquisition (M&A) likelihood and post-merger outcomes, diverging from prior research that treats religious adherents as a homogeneous group. Analyzing a comprehensive sample of mergers, we find that pairs of firms with more similar regional religious compositions are more likely to engage in M&As and experience improved merger announcement returns. This religious alignment between acquiring and target firms is also linked to superior post-merger operating performance and efficiency. Cross-sectional analyses reveal that employee integration serves as a critical channel through which these performance gains are realized. Market reactions to merger announcements are more favorable when the target firm has a larger workforce, operates in the same industry, or the acquiring firm is more diversified than the target. Our findings suggest that religious similarity fosters mutual understanding, builds trust, and reduces friction in collaborative efforts, making it a significant driver of post-merger synergy. These insights extend beyond the context of any single market, highlighting the broader role of cultural alignment in enhancing M&A success.
DOI: 10.1016/j.intfin.2025.102138
链接: https://doi.org/10.1016/j.intfin.2025.102138