Zobrazit v EDS

Navigating New Terrain: Domestic Geographical Dispersion and IPO Survival in the United States.

Uloženo v:
Podrobná bibliografie
Název: Navigating New Terrain: Domestic Geographical Dispersion and IPO Survival in the United States.
Autoři: Gounopoulos, Dimitrios1 (AUTHOR) D.gounopoulos@bath.ac.uk, Huang, Chen2 (AUTHOR), Zhang, Yu3 (AUTHOR)
Zdroj: Journal of Business Finance & Accounting. Oct2025, p1. 28p. 2 Illustrations.
Témata: *BUSINESS failures, *GOING public (Securities), *CONFLICT of interests, *CORPORATE governance, *ORGANIZATIONAL governance, SPATIAL variation
Geografický termín: UNITED States
Abstrakt: ABSTRACT Using a text‐based measure to capture firms’ domestic geographic diversification within the United States, this study finds that newly listed firms with extensive geographic dispersion face an elevated risk of failure. This vulnerability is especially pronounced in industries dominated by soft information environments, where effective oversight is more difficult to achieve. However, several factors can mitigate this risk. Dispersed initial public offering (IPO) firms that are headquartered in metropolitan areas, maintain a higher proportion of operations in neighboring states, or benefit from strong external governance exhibit a greater likelihood of survival. These findings support the view that geographic dispersion intensifies information asymmetry and agency conflicts, which can divert managerial attention and undermine decision‐making effectiveness, ultimately increasing the likelihood of failure in the post‐IPO period. [ABSTRACT FROM AUTHOR]
Copyright of Journal of Business Finance & Accounting is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)
Databáze: Business Source Index
Popis
Abstrakt:ABSTRACT Using a text‐based measure to capture firms’ domestic geographic diversification within the United States, this study finds that newly listed firms with extensive geographic dispersion face an elevated risk of failure. This vulnerability is especially pronounced in industries dominated by soft information environments, where effective oversight is more difficult to achieve. However, several factors can mitigate this risk. Dispersed initial public offering (IPO) firms that are headquartered in metropolitan areas, maintain a higher proportion of operations in neighboring states, or benefit from strong external governance exhibit a greater likelihood of survival. These findings support the view that geographic dispersion intensifies information asymmetry and agency conflicts, which can divert managerial attention and undermine decision‐making effectiveness, ultimately increasing the likelihood of failure in the post‐IPO period. [ABSTRACT FROM AUTHOR]
ISSN:0306686X
DOI:10.1111/jbfa.70020