Symmetric and asymmetric effects of proximities. The case of M&A deals in Italy
Title | Symmetric and asymmetric effects of proximities. The case of M&A deals in Italy |
Publication Type | Journal Article |
Year of Publication | 2016 |
Authors | Boschma, R, Marrocu, E, Paci, R |
Journal | Journal of Economic Geography |
Volume | 16 |
Issue | 2 |
Pagination | 505-535 |
Abstract | This article investigates the effect of geographical, industrial, organizational and institutional proximity on the probability that any two firms located in Italy engage in a mergers and acquisitions (M&A) deal. Within a logistic rare event framework, we investigate 4261 actual deals completed over the period 2000–2011 and around 3.8 million potential deals. We find robust evidence that all forms of proximity have a positive effect, especially industrial relatedness. Moreover, we find evidence that proximities generate asymmetric effects on M&A deals, depending on the location of bidders and targets and on whether some specific individual characteristics are featured by the acquirer or by the target firm. |
URL | http://joeg.oxfordjournals.org/content/16/2/505.abstract |
DOI | 10.1093/jeg/lbv005 |
Keywords | asymmetry, geographical proximity, industrial relatedness, M&A, rare events models |