Title

Geographic Distance And M&Amp;A Markets: Ipos As Information Diffusion Mechanisms

Keywords

Acquisition; Distance; Ipo

Abstract

This paper examines acquisitions of small firms after they underwent an initial public offering (IPO). The research question we study is whether the signals sent on the issuer affect the type of acquirer that purchases the firm. We use insights from recent studies that examine geographic distance as a source of adverse selection in other markets. We develop the argument that specific features of issuing firms and the IPO process - venture capitalist backing, investment bank reputation, and underpricing - potentially provide signals that mitigate the effects of information asymmetry. The findings illustrate the relevance of market-based remedies to the risk of adverse selection in M&A deals and highlight the interdependencies between IPO and M&A markets.

Publication Date

1-1-2006

Publication Title

Academy of Management 2006 Annual Meeting: Knowledge, Action and the Public Concern, AOM 2006

Number of Pages

-

Document Type

Article; Proceedings Paper

Personal Identifier

scopus

DOI Link

https://doi.org/10.5465/ambpp.2006.22898215

Socpus ID

85088715424 (Scopus)

Source API URL

https://api.elsevier.com/content/abstract/scopus_id/85088715424

This document is currently not available here.

Share

COinS