Finance Faculty Publications and Presentations

Interstate migration-based social networks and M&A decisions

Document Type

Article

Publication Date

2-2024

Abstract

Acquisition decisions and outcomes are found to be associated with the availability of interstate migration-based social networks. The likelihood of bidders pursuing targets headquartered in migration sending states increases with these social networks’ size, in particular when (a) targets are in the same industry, (b) migration networks span distant states, and (c) targets are small. We also find smaller takeover premia and higher acquirer announcement returns in interstate transactions involving large migration networks. Our collective evidence is consistent with the notion that both enhanced expected synergies and information advantages may drive acquirers’ propensity to choose targets from migration sending states.

Comments

© 2023 The Eastern Finance Association.


https://onlinelibrary.wiley.com/share/KMZEYVDXWDYHSRIKBKBB?target=10.1111/fire.12349

Publication Title

The Financial Review

DOI

10.1111/fire.12349

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