To overcome several limitations of existing diversification indices, we introduce the diversification quotient (DQ). Defined through a parametric family of risk measures, DQ satisfies three natural properties, namely, non-negativity, location invariance and scale invariance, which are shown to...

In this paper, we examine how the geographic location of firms affects acquisition decisions and value creation for acquirers in takeover transactions. We find that firms located in an urban area are more likely to receive a takeover bid and complete a takeover transaction as a target compared...