500
Views
1
CrossRef citations to date
0
Altmetric
Original Articles

Firm location and the method of payment in mergers and acquisitions

, &
 

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.

JEL Classification:

Reprints and Corporate Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

To request a reprint or corporate permissions for this article, please click on the relevant link below:

Academic Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

Obtain permissions instantly via Rightslink by clicking on the button below:

If you are unable to obtain permissions via Rightslink, please complete and submit this Permissions form. For more information, please visit our Permissions help page.