Legitimacy and Acquisition Performance: An Institutional Approach

摘要

In emerging markets,the institutional factors have significantly direct and indirect effect on corporation strategic behavior and performance. As a core concept of institutional theory,corporate legitimacy is measured and its influence on firm performance in corporate acquisitions is examined in this paper. Based on an empirical research,it is found that acquisition performance is positively influenced by both external and internal legitimacy, which means the more support the acquirer get from both external stakeholders such as local government, suppliers,social organizations and internal stakeholders including the managers and staff of the acquired firm,the better the acquisition goals will be achieved.