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Economic research - Ekonomska istraživanja, Vol. 29 No. 1, 2016.

Original scientific paper

https://doi.org/10.1080/1331677X.2016.1197553

Does the geographic location influence takeovers?

Radu Ciobanu orcid id orcid.org/0000-0002-2842-5604

Full text: english pdf 1.953 Kb

page 782-798

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Abstract

The aim of this study is to examine whether there is an impact of
geographical proximity, between the acquirer and the target company
of a takeover process, on the success of the transaction. In order to do
this we analysed a complete database of all the takeover bids between
2000 and 2014 on the Romanian capital market. The evidence reveals
that not only is the geographical proximity important for the success
of the transaction, but that also takeovers can occur across distant
locations if the target firm has a long history of its activity that can be
monitored by the acquiring companies. We have also tested if there
are NUTS regions characteristics that can influence the decisionmaking,
but the results were inconclusive.

Keywords

Takeover bids; geographical proximity; M&A decision; probability of success

Hrčak ID:

171761

URI

https://hrcak.srce.hr/171761

Publication date:

22.12.2016.

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