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

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