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|
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.
|Keywords||asymmetry, geographical proximity, industrial relatedness, M&A, rare events models|