The effect of cultural and legal distance on the likelihood of closing a cross-border M&A deal: a quantitative study about Asian and European M&A deals

A lot of researchers view cultural and legal distance as a critical factor in the postacquisition period of cross-border merger and acquisitions (M&A). Yet, only little empirical research has been done to determine the role of these distances during the dealclosing period. Therefore, this thesis investigates the role of cultural and legal distance on the likelihood of closing a deal in cross-border M&As. Data was drawn from the Thomson Reuters Eikon database. The sample consists of 1 450 M&A deals of European and Asian companies. Results confirm that legal distance has a significant impact on deal completion, while cultural distance seems, against the initial expectations, not to have any significant negative impact on the completion of a cross-border M&A deal