Monica Yang

Who Do Firms Imitate? A Multilevel Approach to Examining Sources of Imitation in the Choice of Mergers and Acquisitions

This article takes a multilevel perspective to explore various sources of imitation. Three levels of imitation sources include firms’ own experience (firm level), actions of firms within the same product market (market level), and firms in different product markets but within the same industry (industry level). Hypothesis tests on mergers and acquisitions (M&As) that occurred from 1981 to 2000 in the financial service industry show that three levels of imitation occur independently and simultaneously and have significant impact on the choice of M&As. M&As by firms entering the focal product market, however, are not significantly associated with the likelihood of an unrelated M&A.

Isomorphic or not

Purpose – The purpose of this paper is to examine whether isomorphism and mimetic, coercive, and normative mechanisms apply to cross‐border mergers and acquisitions initiated by Chinese firms. Unlike prior studies, the paper aims to identify multiple bases for imitation of firm strategy and verify: whether the degree of conformity in the multiple bases of firm strategy increases over time; and how mimetic, coercive, and normative pressures affect the degree of conformity.Design/methodology/approach – Hypotheses are tested on a sample of 1,004 cross‐border mergers and acquisitions (MA the location of the target firm; the ownership structure; and the size of the deal.Findings – The results show that not all decisions on cross‐border M&As react to forces of conformity in the same way. Overtime, the overall degree of conformity...

Re‐examining mimetic isomorphism

Purpose – In this study the aim is to analyze multiple decisions in mergers and acquisitions (M&As) strategy to verify whether isomorphism appears in these decisions when a firm imitates others and to determine under what conditions the link between imitation and the degree of similarity in M&As is weakened.Design/methodology/approach – With a sample of 4,881 completed M&As in the financial service industry, the authors adopt the generalized multivariate regression model to test the hypothesized effects of the independent variables on the degree of similarity in M&As.Findings – Support is found for the mimetic isomorphism argument. Furthermore, firm experience and local market segmentation weaken the positive relationship between imitation and the degree of similarity in M&As.Originality/value – This study enhances the understanding of mimetic isomorphism by not only verifying the relationship between imitation and isomorphism, but also integrating the role of organizational active agency (firm experience...

Ownership participation of cross-border mergers and acquisitions by emerging market firms

Purpose – The purpose of this paper is to adopt a multi-level approach to investigate what factors shape the content of emerging market firms’ foreign market entry decisions, particularly the ownership participation in cross-border mergers and acquisitions (MA and uses a standard event study methodology to assess the market reaction of a particular cross-border M&A deal. Findings – The author finds that a country-level factor (institutional distance), an industry-level factor (industry unrelatedness) and a firm-level factor (board concentration) have significant impact on ownership participation in cross-...

Ownership Participation and Market Value of Cross-border Mergers and Acquisitions

This paper adopts a multi-level approach to investigate what factors shape the content of emerging market firms’ foreign market entry decisions, particularly the ownership participation in cross-border mergers and acquisitions (CBMAs). In addition, we would like to know if companies from emerging markets that possess higher (or lower) ownership in CBMA receive higher valuation in the market. Using panel data of CBMAs by nine EMNCs from 2000 to 2012, we found that industry-level factor (industry unrelatedness) and firm-level factor (board concentration) have significant impact on ownership participation in CBMA. We also found that investors do give high valuation to those emerging market firms that chose high ownership participation in CBMA. However, we did not find evidence to support the relationship between ownership participation in CBMA and cultural distance. Neither did we find the support for the relationship between ownership participation in CBMA and board independence.