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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 decision-making, but the results were inconclusive.
Notes
1. The NUTS classification (Nomenclature of territorial units for statistics) is a hierarchical system for dividing up the economic territory of the EU. This was made for the purpose of the collection, development and harmonisation of EU regional statistics, socio-economic analyses of the regions (NUTS 1: major socio-economic regions; NUTS 2: basic regions for the application of regional policies; NUTS 3: small regions for specific diagnoses) and framing of EU regional policies (regions eligible for aid from the Structural Funds (Objective 1) have been classified at NUTS 2 level, areas eligible under the other priority objectives have mainly been classified at NUTS 3 level).