Corpus ID: 15638367

Firm Locations and Takeover Likelihood

@inproceedings{Cai2010FirmLA,
  title={Firm Locations and Takeover Likelihood},
  author={Ye Cai},
  year={2010}
}
We examine the impact of a firm’s geographic location on its takeover likelihood with a sample of U.S. public firms from 1980 to 2005. We first show that firms located in an urban area are 8.3% more likely to receive a takeover bid and 10.5% more likely to complete the takeover transaction than firms located in a non-urban area. Our findings are robust after controlling for various firm characteristics, alternative econometric specifications, and endogeneity in firm locations. We propose three… Expand
rhsmith.umd.edu
2 Citations
Highly Influential Citations
1
Background Citations
2
Methods Citations
1
Results Citations
1

Tables from this paper

2 Citations

Citation Type

Citation Type

Does Information Asymmetry Matter to Equity Pricing? Evidence from Firms’ Geographic Location
The scarcity of suitable proxies for asymmetric information has impeded empirical research from providing reliable evidence on whether information risk shapes equity pricing. In re-examining this… Expand
The Effect of SFAS 141 and 142 on the Likelihood and the Form of Financing of Corporate Takeovers
We investigate the effects of the elimination of the pooling method, under SFAS 141, and of goodwill amortization, under SFAS 142, on the form of acquisition financing and on a firm’s takeover… Expand

References

SHOWING 1-10 OF 52 REFERENCES
The Impact of Firm Location on Equity Issuance
"In this paper, I use location as a proxy for the ability of a firm to issue equity. Numerous studies indicate that investors are better able to obtain information on nearby companies. I posit that… Expand
Trade-Offs in Staying Close: Corporate Decision Making and Geographic Dispersion
We investigate whether the geographic dispersion of a firm affects corporate decision making. Our findings suggest that social factors work alongside informational considerations to make geography… Expand
The Causes and Consequences of Venture Capital Stage Financing
This paper examines the causes and consequences of venture capital (VC) stage financing. Using information about the physical location of an entrepreneurial firm and the geographic distance between… Expand
Do Local Analysts Know More? A Cross-Country Study of the Performance of Local Analysts and Foreign Analysts
This paper examines whether analysts resident in a country make more precise earnings forecasts for firms in that country than analysts who are not resident in that country. Using a sample of 32… Expand
Takeovers and the Cross-Section of Returns
This paper considers the impact of takeover (or acquisition) likelihood on firm valuation. If firms are more likely to acquire during times when they have free cash and/or when the required rate of… Expand
Does Distance Still Matter? The Information Revolution in Small Business Lending
The distance between small firms and their lenders in the United States is increasing. Not only are firms choosing more distant lenders, they are also communicating with them in more impersonal ways.… Expand
Corporate Governance and Equity Prices
Corporate-governance provisions related to takeover defenses and shareholder rights vary substantially across firms. In this paper, we use the incidence of 24 different provisions to build a… Expand
Local Does as Local is: Information Content of the Geography of Individual Investors' Common Stock Investments
Using a data set on the investments made by a large number of retail investors from 1991 to 1996, we find that households exhibit a strong preference for local investment - the average household… Expand
Local Does as Local is: Information Content of the Geography of Individual Investors&Apos; Common Stock Investments
Using a data set on the investments made by a large number of retail investors from 1991 to 1996, we find that households exhibit a strong preference for local investment - the average household… Expand
Financial Structure, Acquisition Opportunities, and Firm Locations
This paper investigates the relation between firms' locations and their corporate finance decisions. We develop a model where being located within an industry cluster increases opportunities to make… Expand
...
1
2
3
4
5
...