Publication Date:
2016-03-19
Description:
This article investigates the effect of geographical, industrial, organizational and institutional proximity on the probability that any two firms located in Italy engage in a mergers and acquisitions (M&A) deal. Within a logistic rare event framework, we investigate 4261 actual deals completed over the period 2000–2011 and around 3.8 million potential deals. We find robust evidence that all forms of proximity have a positive effect, especially industrial relatedness. Moreover, we find evidence that proximities generate asymmetric effects on M&A deals, depending on the location of bidders and targets and on whether some specific individual characteristics are featured by the acquirer or by the target firm.
Keywords:
C21 - Cross-Sectional Models
;
Spatial Models
;
Treatment Effect Models, G34 - Mergers
;
Acquisitions
;
Restructuring
;
Corporate Governance, R12 - Size and Spatial Distributions of Regional Economic Activity
Print ISSN:
1468-2702
Electronic ISSN:
1468-2710
Topics:
Geography
,
Economics
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