File Download

There are no files associated with this item.

  Links for fulltext
     (May Require Subscription)
Supplementary

Article: Cultural similarity as in-group favoritism: The impact of religious and ethnic similarities on alliance formation and announcement returns

TitleCultural similarity as in-group favoritism: The impact of religious and ethnic similarities on alliance formation and announcement returns
Authors
Issue Date2015
PublisherElsevier. The Journal's web site is located at http://www.elsevier.com/locate/jcorpfin
Citation
Journal of Corporate Finance, 2015, v. 34, p. 32-46 How to Cite?
AbstractStrategic alliance research has shown that national cultural similarity between partner firms can reduce transaction costs and positively influence cross-border alliance formation and performance. Yet, social identity research in psychology suggests that cultural similarity can give rise to in-group favoritism, which can lead partner firms sharing similar cultural backgrounds to cooperate with each other to defend their shared identity instead of pursuing economic efficiencies associated with cultural similarity. To investigate in-group favoritism associated with cultural similarity, we examine the influence of cross-regional religious similarity and ethnic similarity in the U.S. on domestic strategic alliance formation and alliance announcement returns. We find that cross-regional religious similarity and ethnic similarity in the U.S. positively affect the volume of interstate alliance activities, but are negatively associated with combined alliance announcement returns of partner firms. These findings suggest that cross-regional religious similarity and ethnic similarity facilitate interstate alliance activities between U.S. states, but investors seem to negatively interpret alliance decisions that can be potentially driven by in-group favoritism.
Persistent Identifierhttp://hdl.handle.net/10722/229662

 

DC FieldValueLanguage
dc.contributor.authorSHI, W-
dc.contributor.authorTang, Y-
dc.date.accessioned2016-08-23T14:12:30Z-
dc.date.available2016-08-23T14:12:30Z-
dc.date.issued2015-
dc.identifier.citationJournal of Corporate Finance, 2015, v. 34, p. 32-46-
dc.identifier.urihttp://hdl.handle.net/10722/229662-
dc.description.abstractStrategic alliance research has shown that national cultural similarity between partner firms can reduce transaction costs and positively influence cross-border alliance formation and performance. Yet, social identity research in psychology suggests that cultural similarity can give rise to in-group favoritism, which can lead partner firms sharing similar cultural backgrounds to cooperate with each other to defend their shared identity instead of pursuing economic efficiencies associated with cultural similarity. To investigate in-group favoritism associated with cultural similarity, we examine the influence of cross-regional religious similarity and ethnic similarity in the U.S. on domestic strategic alliance formation and alliance announcement returns. We find that cross-regional religious similarity and ethnic similarity in the U.S. positively affect the volume of interstate alliance activities, but are negatively associated with combined alliance announcement returns of partner firms. These findings suggest that cross-regional religious similarity and ethnic similarity facilitate interstate alliance activities between U.S. states, but investors seem to negatively interpret alliance decisions that can be potentially driven by in-group favoritism.-
dc.languageeng-
dc.publisherElsevier. The Journal's web site is located at http://www.elsevier.com/locate/jcorpfin-
dc.relation.ispartofJournal of Corporate Finance-
dc.rightsPosting accepted manuscript (postprint): © <year>. This manuscript version is made available under the CC-BY-NC-ND 4.0 license http://creativecommons.org/licenses/by-nc-nd/4.0/-
dc.titleCultural similarity as in-group favoritism: The impact of religious and ethnic similarities on alliance formation and announcement returns-
dc.typeArticle-
dc.identifier.emailTang, Y: tangyn04@hku.hk-
dc.identifier.authorityTang, Y=rp02042-
dc.identifier.doi10.1016/j.jcorpfin.2015.07.003-
dc.identifier.hkuros261863-
dc.identifier.volume34-
dc.identifier.spage32-
dc.identifier.epage46-

Export via OAI-PMH Interface in XML Formats


OR


Export to Other Non-XML Formats