Financial structure, liquidity, and firm locations
By: Andres Almazan ... [et al.].
Contributors: Almazan, Andres.; National Bureau of Economic Research.
Series: NBER working paper series -- working paper 13660; Working paper series (National Bureau of Economic Research : Online) -- working paper no. 13660.
Publisher: National Bureau of Economic Research
Published: 2007
Place of publication: Cambridge, MA
Language: eng
Format: Electronic resource
Description: "This paper investigates the relation between a firm's location and its corporate finance decisions.  We develop a simple model where being located within an industry cluster increases opportunities to make acquisitions, and to facilitate those acquisitions, firms within clusters maintain more financial slack.  Consistent with our model we find that firms that are located within industry clusters tend to make more acquisitions, and have lower debt ratios and larger cash balances than their industry peers located outside clusters.  In addition, we document that firms in growing cities and technology centers also maintain more financial slack.  Overall, these findings, which reveal systematic patterns between geography and corporate finance choices, suggest the importance of growth opportunities in firms' financial decisions"--National Bureau of Economic Research web site.
Notes: Title from PDF file as viewed on 6/5/2008.

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