Nonpecuniary Benefits: Evidence from the Location of Private Company Sales
研究发现，位于高生活质量城市的私营企业出售时溢价14%至20%，且该溢价在买家不偏好高生活质量地点时消失，表明企业家愿意为生活品质支付额外成本。
Abstract This paper investigates whether acquisition prices reflect a specific set of nonpecuniary benefits preferred by entrepreneurs: the quality of life (QOL) associated with the business location. Using data on private firm acquisitions, we find that target firms in high-QOL cities sell for a 14% to 20% premium. Traditional financial factors do not explain this premium, which dissipates when the buyer is unlikely to have preferences for high-QOL locations. Using wage-to-housing cost differentials to decompose local amenities and data on migration patterns, we find that QOL amenities have a greater impact on entrepreneurs’ location decisions relative to wage workers. Received: 27 February 2022; Editorial decision: 29 January 2024 Editor: Camelia Kuhnen Authors have furnished an Internet Appendix, which is available on the Oxford University Press Web site next to the link to the final published paper online.