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
Copyright Status
Unknown
Socpus ID
85088715424 (Scopus)
Source API URL
https://api.elsevier.com/content/abstract/scopus_id/85088715424
STARS Citation
Ragozzino, Roberto and Reuer, Jeffrey J., "Geographic Distance And M&Amp;A Markets: Ipos As Information Diffusion Mechanisms" (2006). Scopus Export 2000s. 8677.
https://stars.library.ucf.edu/scopus2000/8677