Metropolitan Size and Corporate Merger Behavior
Document Type
Article
Publication Date
12-1-1991
Identifier/URL
40904754 (Pure)
Abstract
Firms' headquarters in larger urban areas are shown to be more active in the merger process and more likely to be predators than firms located in smaller places. The larger the metropolitan area, the stronger the tendencies. The findings are attributable to (1) the disproportionate presence of large corporations in large urban areas and (2) efficiency advantages of large metropolitan locations, which include face-to-face communications, establishing and maintaining business relationships, maintaining interurban linkages, and attracting top talent. The shift of corporate headquarters away from smaller places has adversely affected the economies of those regions through decreased employment, income loss, and a decline in future development prospects. The spatial asymmetries have implications for economic development policy.
Repository Citation
Blair, J. P.,
& Endres, C. R.
(1991). Metropolitan Size and Corporate Merger Behavior. Urban Affairs Review, 27 (2), 293-313.
https://corescholar.libraries.wright.edu/econ/351
DOI
10.1177/004208169102700209
