IDEAS home Printed from https://ideas.repec.org/a/bla/jbfnac/v53y2026i1p352-379.html

Navigating New Terrain: Domestic Geographical Dispersion and IPO Survival in the United States

Author

Listed:
  • Dimitrios Gounopoulos
  • Chen Huang
  • Yu Zhang

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.

Suggested Citation

  • Dimitrios Gounopoulos & Chen Huang & Yu Zhang, 2026. "Navigating New Terrain: Domestic Geographical Dispersion and IPO Survival in the United States," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 53(1), pages 352-379, February.
    • Handle: RePEc:bla:jbfnac:v:53:y:2026:i:1:p:352-379
    DOI: 10.1111/jbfa.70020
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/jbfa.70020
    Download Restriction: no
    File URL: https://libkey.io/10.1111/jbfa.70020?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:jbfnac:v:53:y:2026:i:1:p:352-379. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0306-686X .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.