The University of Southampton
University of Southampton Institutional Repository

Firm location and the method of payment in mergers and acquisitions

Firm location and the method of payment in mergers and acquisitions
Firm location and the method of payment in mergers and acquisitions
This article examines the impact of a bidding firm’s geographical location on the choice of method of payment in mergers and acquisitions. We find that rural bidders are more likely to offer pure stock deals and have lower propensity to use cash as the method of payment compared to their nonrural counterparts. Such findings are possibly attributable to recent empirical evidence which finds that rural firms face higher costs of debt and have limited access to soft information that can help in determining the true value of target firms.
1350-4851
317-324
Koutmos, Dimitrios
542bf98b-f0bb-4072-bc2e-9806f6ca0599
Song, Wei
0d91b8a3-694b-469e-a15e-bba82dc5d090
Zhou, Si
4d888ef9-73bb-4fde-969e-5003c5c0b146
Koutmos, Dimitrios
542bf98b-f0bb-4072-bc2e-9806f6ca0599
Song, Wei
0d91b8a3-694b-469e-a15e-bba82dc5d090
Zhou, Si
4d888ef9-73bb-4fde-969e-5003c5c0b146

Koutmos, Dimitrios, Song, Wei and Zhou, Si (2014) Firm location and the method of payment in mergers and acquisitions. Applied Economics Letters, 21 (5), 317-324. (doi:10.1080/13504851.2013.859365).

Record type: Article

Abstract

This article examines the impact of a bidding firm’s geographical location on the choice of method of payment in mergers and acquisitions. We find that rural bidders are more likely to offer pure stock deals and have lower propensity to use cash as the method of payment compared to their nonrural counterparts. Such findings are possibly attributable to recent empirical evidence which finds that rural firms face higher costs of debt and have limited access to soft information that can help in determining the true value of target firms.

Text
Firm location and the method of payment in M&A.pdf - Version of Record
Restricted to Repository staff only
Request a copy

More information

e-pub ahead of print date: 7 January 2014
Published date: 7 January 2014
Organisations: Centre for Digital, Interactive & Data Driven Marketing

Identifiers

Local EPrints ID: 368508
URI: http://eprints.soton.ac.uk/id/eprint/368508
ISSN: 1350-4851
PURE UUID: 03514201-e1a2-42ae-9900-b298e820cf4a
ORCID for Si Zhou: ORCID iD orcid.org/0000-0002-8040-8756

Catalogue record

Date deposited: 09 Sep 2014 10:41
Last modified: 15 Mar 2024 03:51

Export record

Altmetrics

Contributors

Author: Dimitrios Koutmos
Author: Wei Song
Author: Si Zhou ORCID iD

Download statistics

Downloads from ePrints over the past year. Other digital versions may also be available to download e.g. from the publisher's website.

View more statistics

Atom RSS 1.0 RSS 2.0

Contact ePrints Soton: eprints@soton.ac.uk

ePrints Soton supports OAI 2.0 with a base URL of http://eprints.soton.ac.uk/cgi/oai2

This repository has been built using EPrints software, developed at the University of Southampton, but available to everyone to use.

We use cookies to ensure that we give you the best experience on our website. If you continue without changing your settings, we will assume that you are happy to receive cookies on the University of Southampton website.

×