Trust Following Acquisitions: A Three-Country Comparative Study of Employee Reactions to Takeovers
- Topics:
- Corporate Culture,
- Mergers
- Tags:
- Acquisition,
- Business Operations,
- Corporate Law,
- Finance,
- Investment,
- Mergers & Acquisitions,
- Takeover,
- Trust,
- University Of Calgary
- Source:
- University of Calgary
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Overview: The study presented in this paper examined how characteristics of the takeover situation and the acquiring firm's integration decisions and actions influence target firm members' trust in the acquiring firm management. A policy-capturing approach was used to model individuals' trust decisions following takeovers in a cross-national sample of German, Canadian and Singaporean employees. The findings revealed that the five factors hypothesized to influence trust, namely mode of takeover, cultural distance, extent of imposed control, perceived attractiveness of acquiring firm's HR and reward system, and interaction history, were significant influences on respondents' trust decisions, and the direction of effects was as hypothesized.
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Format: PDF | Size: 471KB | Date: Mar 2003 | Pages: 41





