GEOGRAPHIC DISTANCE AND CORPORATE ACQUISITIONS: SIGNALS FROM IPO FIRMS

• 成果类型: Article
• 署名作者: Ragozzino, Roberto; Reuer, Jeffrey J.
• 署名单位: University of Texas System; University of Texas Dallas; Purdue University System; Purdue University
• 刊物名称: STRATEGIC MANAGEMENT JOURNAL
• ISSN/ISSBN: 0143-2095
• DOI: 10.1002/smj.914
• 发表日期: 2011
• 页码: 876-894
• 关键词: M&A IPOs; signaling; information asymmetry; GEOGRAPHIC DISTANCE; dual tracking

摘要

This paper examines acquisitions of firms after they have undergone initial public offerings (IPOs). Combining insights from information economics with recent research on geographic distance in various market settings, the analysis investigates whether the presence or absence of different signals on IPO firms has an impact on the geographic proximity of acquirers. The central proposition we develop and test is that specific characteristics of IPOs-venture capitalist backing, investment bank reputation, and underpricing of issued shares-convey signals on these firms, which can facilitate acquisitions by more remote acquirers who are more likely to face the risk of adverse selection. Copyright (C) 2011 John Wiley & Sons, Ltd.