Journal article

The effects of within-country linguistic and religious diversity on foreign acquisitions

Douglas Dow, Ilya RP Cuypers, Gokhan Ertug

JOURNAL OF INTERNATIONAL BUSINESS STUDIES | PALGRAVE MACMILLAN LTD | Published : 2016

Abstract

This article explores how within-country diversity of both language and religion influences the ownership structure of foreign acquisitions. Commentators have acknowledged the potential importance of "within-country diversity," but to date this issue has received minimal empirical attention. We propose that diversity plays two distinct roles. Namely, diversity within the host country may be an additional source of behavioral uncertainty and information asymmetry, over and above the effects arising from cross-national differences. Moreover, diversity within the home country may increase the cognitive complexity of the decision makers, moderating the firm's response to the distance and diversi..

View full abstract

University of Melbourne Researchers