The effect of national distance and organizational learning on cross-border acquisitions in Europe, 2006-2015

The aim of this study is to explore the effect of national distance and organizational learning on the share of equity sought in cross-border acquisitions. Furthermore, it has been investigated the moderating role of organizational learning on the relationship between national distance and the share of equity sought. National distance includes differences between two different countries in terms of their political system, cultural system, financial system and skill development system whereas organizational learning means the number of merger and acquisition activities in host countries. In this context, it has been examined 6092 acquisition activities by European companies from 2006 to 2015. Evidence has shown that political distance and skill development distance between home and host countries have a negative impact on the share of equity sought although financial distance and cultural distance does not affect significantly. Organizatioanl learning improves the share of equity sought. However, there is no moderating role of organizational learning on the relationship between national distance and the share of equity sought.