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. JEL classifications: G34, R12, C21

Symmetric and asymmetric effects of proximities. The case of M&A deals in Italy

Marrocu Emanuela;Paci Raffaele
2016-01-01

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. JEL classifications: G34, R12, C21
2016
M&A, geographical proximity, industrial relatedness, rare events models, asymmetry
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11584/99437
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