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The Application of Hofstede Theory in the Modeling of Hidden Costs in Mergers and Acquisitions

Author(s)

Xinjie Li

Affiliation(s)

Department of Finance and Banking, Shandong University of Science and Technology, Jinan, Shandong, China *Corresponding Author

Abstract

This article focuses on the application of Hofstede's theory in the modeling of hidden costs in mergers and acquisitions. Firstly, the concept and significance of hidden costs in mergers and acquisitions were expounded. Then, the core contents of Hofstede's theory were introduced in detail, including dimensions such as power distance, uncertainty avoidance, individualism and collectivism, masculinization and feminization, long-term orientation and short-term orientation. Then, deeply analyze the influencing factors of the hidden costs of mergers and acquisitions, explore how to integrate Hofstede's theory into the modeling process of hidden costs of mergers and acquisitions, and construct a model framework based on this theory and explain its application logic. Research shows that the hidden cost model of mergers and acquisitions constructed by Hofstede theory can assess the hidden costs in mergers and acquisitions more comprehensively and accurately, providing more valuable references for enterprises' merger and acquisition decisions.

Keywords

Hofstede Theory; Hidden Costs of Mergers and Acquisitions; Modeling Cultural Dimension

References

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