Pandemic Attributes and Location Avoidance of Firm Acquisitions

Topic：Pandemic Attributes and Location Avoidance of Firm Acquisitions

Lecturer：Jun Xia

Date：2023/6/8   15：00-16：30 （Beijing）

 Abstract：

Pandemic Attributes and Location Avoidance of Firm Acquisitions

From a threat avoidance perspective, this study develops new dimensions of external threats to examine the influence of pandemic attributes on the location choice of firm investments within a country. We conceptualize that a pandemic like Covid-19 can be characterized by its pervasiveness, volatility, and rhythm in a region. Integrating the threat-response literature and research on natural disasters, we propose that these pandemic characteristics in a region have negative impacts on the choice of that location for firm acquisition activities. We identify three corresponding mechanisms, pandemic spatial exposure, unpredictability, and constant exposure, to explain the relationships. Using a sample of U.S. public firms during the COVID-19 pandemic period, we found evidence supporting our predictions.