Navigating New Terrain: Domestic Geographical Dispersion and IPO Survival in the United States
研究发现，美国新上市公司若国内地理分布广泛，失败风险更高，尤其在软信息行业；但位于大都市、邻近州运营或外部治理强时，生存概率更大。
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.