“The concerns of boardrooms have generally shifted away from macro issues to valuation when it comes to a deal” June 2015, Wilhelm Schulz, Head of Europe, Middle East and Africa M&A at Citigroup.
1 Introduction
2 Related literature and hypotheses
2.1 EMVCs and gains from M&A
2.2 Relative equity market valuation conditions and the gains from CBA
2.3 Strength of domestic currency and gains from M&A
3 Data and methodology
3.1 Data
3.2 Sample statistics
Year | ALL | DOM | CBA | G6 | ROW | FOC | DIV | CASH | STOCK | UNL | LISTED | DV | MV | PREM | CAR |
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
1988 | 42 | 34 | 8 | 8 | 0 | 12 | 30 | 17 | 4 | 35 | 7 | 38.9 | 492.0 | 36.2 % | −0.38 % |
1989 | 336 | 247 | 89 | 67 | 22 | 138 | 198 | 163 | 30 | 294 | 42 | 33.6 | 402.3 | 45.5 % | −0.18 % |
1990 | 204 | 149 | 55 | 39 | 16 | 86 | 118 | 105 | 14 | 184 | 20 | 28.1 | 420.9 | 35.4 % | 0.11 % |
1991 | 137 | 113 | 24 | 16 | 8 | 55 | 82 | 54 | 15 | 115 | 22 | 38.9 | 768.9 | 37.2 % | 0.43 % |
1992 | 138 | 107 | 31 | 21 | 10 | 49 | 89 | 59 | 11 | 133 | 5 | 13.1 | 534.6 | 17.0 % | 0.42 % |
1993 | 210 | 162 | 48 | 33 | 15 | 85 | 125 | 90 | 17 | 194 | 16 | 43.8 | 439.3 | 40.1 % | 2.49 % |
1994 | 262 | 201 | 61 | 41 | 20 | 127 | 135 | 118 | 24 | 242 | 20 | 28.8 | 438.5 | 34.5 % | 1.06 % |
1995 | 278 | 200 | 78 | 61 | 17 | 107 | 171 | 106 | 18 | 259 | 19 | 43.3 | 556.0 | 20.9 % | 0.90 % |
1996 | 315 | 233 | 82 | 58 | 24 | 142 | 173 | 138 | 22 | 288 | 27 | 47.4 | 520.2 | 30.1 % | 1.47 % |
1997 | 383 | 262 | 121 | 81 | 40 | 165 | 218 | 152 | 23 | 352 | 31 | 66.0 | 626.8 | 46.8 % | 0.96 % |
1998 | 411 | 282 | 129 | 86 | 43 | 222 | 189 | 212 | 20 | 368 | 43 | 56.3 | 674.8 | 48.5 % | 1.35 % |
1999 | 433 | 298 | 135 | 97 | 38 | 252 | 181 | 197 | 26 | 366 | 67 | 479.3 | 1154.2 | 42.7 % | 3.47 % |
2000 | 434 | 294 | 140 | 91 | 49 | 244 | 190 | 160 | 43 | 388 | 46 | 113.2 | 1179.7 | 40.8 % | 0.83 % |
2001 | 302 | 208 | 94 | 69 | 25 | 166 | 136 | 104 | 19 | 275 | 27 | 38.4 | 757.2 | 44.5 % | 0.84 % |
2002 | 217 | 163 | 54 | 32 | 22 | 115 | 102 | 110 | 14 | 203 | 14 | 70.9 | 730.6 | 43.5 % | 1.88 % |
2003 | 193 | 127 | 66 | 50 | 16 | 123 | 70 | 92 | 10 | 175 | 18 | 43.6 | 875.7 | 38.2 % | 2.74 % |
2004 | 214 | 151 | 63 | 45 | 18 | 124 | 90 | 81 | 11 | 205 | 9 | 42.0 | 719.6 | 26.4 % | 1.30 % |
2005 | 292 | 210 | 82 | 52 | 30 | 173 | 119 | 128 | 16 | 266 | 26 | 71.3 | 1036.8 | 16.4 % | 2.56 % |
2006 | 298 | 202 | 96 | 54 | 42 | 180 | 118 | 127 | 9 | 280 | 18 | 52.8 | 674.5 | 29.9 % | 1.45 % |
2007 | 336 | 226 | 110 | 59 | 51 | 201 | 135 | 129 | 13 | 310 | 26 | 63.2 | 1198.5 | 41.8 % | 1.71 % |
2008 | 183 | 111 | 72 | 47 | 25 | 107 | 76 | 86 | 8 | 174 | 9 | 67.7 | 957.8 | 39.5 % | 0.47 % |
2009 | 96 | 63 | 33 | 19 | 14 | 56 | 40 | 44 | 12 | 79 | 17 | 48.3 | 1224.8 | 45.6 % | 1.12 % |
2010 | 166 | 99 | 67 | 39 | 28 | 89 | 77 | 93 | 9 | 153 | 13 | 83.1 | 1705.4 | 26.0 % | 1.49 % |
Total | 5880 | 4142 | 1738 | 1165 | 573 | 3018 | 2862 | 2565 | 388 | 5338 | 542 | – | – | – | – |
% of all | – | 70 % | 30 % | 20 % | 10 % | 51 % | 49 % | 44 % | 7 % | 91 % | 9 % | – | – | – | – |
Average | – | – | – | – | – | – | – | – | – | – | – | 70.1 | 786.5 | 35.9 % | 1.24 % |
ALL | DOM | CBA | Focused (FOC) | Diversifying (DIV) | CASH | STOCK | Target listing status | ||||
---|---|---|---|---|---|---|---|---|---|---|---|
ALL | G6 | RoW | Unlisted | Public | |||||||
Panel A | |||||||||||
ALL | |||||||||||
N | 5880 | 4142 | 1738 | 1165 | 573 | 3018 | 2862 | 2565 | 388 | 5338 | 542 |
% | – | 70 | 30 | 20 | 10 | 51 | 49 | 44 | 7 | 91 | 9 |
Sum of DV (in £ bn) | 508 | 177 | 331 | 276 | 55 | 363 | 145 | 123 | 54 | 177 | 331 |
Low-EMVCs | |||||||||||
N | 1545 | 1136 | 409 | 287 | 122 | 742 | 803 | 682 | 117 | 1406 | 139 |
% | 26 | 19 | 7 | 5 | 2 | 13 | 14 | 12 | 2 | 24 | 2 |
Sum of DV (in £ bn) | 71 | 41 | 30 | 24 | 7 | 34 | 37 | 26 | 8 | 43 | 28 |
Neutral-EMVCs | |||||||||||
N | 2737 | 1912 | 825 | 538 | 287 | 1435 | 1302 | 1181 | 165 | 2498 | 239 |
% | 47 | 33 | 14 | 9 | 5 | 24 | 22 | 20 | 3 | 42 | 4 |
Sum of DV (in £ bn) | 149 | 80 | 69 | 40 | 28 | 98 | 51 | 62 | 26 | 79 | 70 |
High-EMVCs | |||||||||||
N | 1598 | 1094 | 504 | 340 | 164 | 841 | 757 | 702 | 106 | 1434 | 164 |
% | 27 | 19 | 9 | 6 | 3 | 14 | 13 | 12 | 2 | 24 | 3 |
Sum of DV (in £ bn) | 288 | 56 | 232 | 212 | 20 | 231 | 57 | 35 | 21 | 55 | 233 |
MV (in £ m) | DV (in £ m) | Deal relative size | MTBV | Age (in years) | Liquidity | Leverage | Premium | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mean | Median | Mean | Median | Mean | Median | Mean | Median | Mean | Median | Mean | Median | Mean | Median | Mean | Median | |
Panel B | ||||||||||||||||
ALL | 793.91 | 121.72 | 86.33 | 7.20 | 0.34 | 0.07 | 2.87 | 2.07 | 16.02 | 12.46 | 0.13 | 0.08 | 22.03 | 17.25 | 38.71 | 35.25 |
Low-EMVCs | 620.83 | 114.14 | 46.10 | 6.50 | 0.28 | 0.07 | 3.79 | 2.05 | 16.14 | 13.71 | 0.13 | 0.08 | 18.83 | 16.68 | 37.92 | 36.13 |
Neutral-EMVCs | 805.16 | 115.23 | 54.39 | 7.00 | 0.32 | 0.07 | 2.70 | 2.05 | 16.05 | 12.14 | 0.14 | 0.08 | 19.32 | 16.81 | 36.70 | 31.89 |
High-EMVCs | 941.99 | 135.83 | 179.92 | 8.48 | 0.43 | 0.07 | 2.31 | 2.16 | 15.83 | 11.77 | 0.14 | 0.09 | 29.55 | 18.36 | 41.77 | 38.48 |
Domestic (DOM) | 441.84 | 81.66 | 42.71 | 6.00 | 0.36 | 0.08 | 2.64 | 1.88 | 14.65 | 10.64 | 0.13 | 0.07 | 22.88 | 16.10 | 37.29 | 34.97 |
CBA (ALL) | 1632.95 | 342.91 | 190.28 | 11.63 | 0.30 | 0.05 | 3.42 | 2.47 | 19.26 | 20.00 | 0.15 | 0.11 | 20.03 | 18.91 | 42.24 | 35.65 |
CBA (G6) | 1616.18 | 353.32 | 236.95 | 13.35 | 0.25 | 0.05 | 3.02 | 2.54 | 19.78 | 20.93 | 0.15 | 0.11 | 20.42 | 19.75 | 41.42 | 36.82 |
CBA (RoW) | 1667.03 | 296.95 | 95.38 | 8.70 | 0.39 | 0.04 | 4.22 | 2.40 | 18.21 | 16.37 | 0.17 | 0.11 | 19.24 | 17.44 | 44.85 | 24.48 |
Focused | 780.45 | 116.20 | 120.25 | 7.65 | 0.28 | 0.08 | 2.90 | 2.05 | 14.08 | 9.89 | 0.14 | 0.08 | 24.80 | 17.23 | 39.97 | 34.77 |
Diversifying | 808.10 | 124.85 | 50.56 | 6.80 | 0.40 | 0.06 | 2.84 | 2.10 | 18.06 | 18.31 | 0.13 | 0.08 | 19.06 | 17.28 | 37.34 | 36.13 |
Unlisted | 679.06 | 114.40 | 33.16 | 6.28 | 0.32 | 0.06 | 2.98 | 2.09 | 15.85 | 12.15 | 0.13 | 0.08 | 22.14 | 17.09 | 86.94 | 65.52 |
Public | 1924.99 | 256.00 | 609.95 | 50.23 | 0.54 | 0.24 | 1.83 | 1.89 | 17.66 | 15.69 | 0.14 | 0.09 | 20.84 | 18.42 | 38.35 | 34.97 |
Cash | 1146.28 | 202.75 | 47.97 | 7.58 | 0.16 | 0.04 | 2.28 | 2.06 | 18.89 | 19.88 | 0.12 | 0.08 | 26.60 | 19.34 | 39.11 | 34.57 |
Stock | 574.04 | 50.93 | 138.54 | 10.15 | 1.48 | 0.27 | 2.49 | 1.87 | 11.70 | 7.76 | 0.19 | 0.11 | 17.79 | 14.27 | 38.39 | 31.49 |
3.3 Classification of high-, neutral-, and low-EMVCs
3.4 Methodology
3.5 Long-run performance of acquirers
3.6 Multivariate analysis
4 Empirical results
4.1 Acquirers’ announcement period gains
Equity market valuations conditions | |||||
---|---|---|---|---|---|
ALL | Low-EMVCs | Neutral-EMVCs | High-EMVCs | HML-EMVCs | |
Panel A: Market-adjusted model | |||||
ALL | |||||
Mean | 1.36*** | 1.04*** | 1.18*** | 1.99*** | 0.95*** |
Median | 0.52*** | 0.51*** | 0.46*** | 0.66*** | 0.15* |
N | 5880 | 1545 | 2737 | 1598 | |
Domestic | |||||
Mean | 1.38*** | 1.08*** | 1.21*** | 2.01*** | 0.93** |
Median | 0.51*** | 0.50*** | 0.48*** | 0.60*** | 0.10 |
N | 4142 | 1136 | 1912 | 1094 | |
CBA (ALL) | |||||
Mean | 1.32*** | 0.93*** | 1.12*** | 1.95*** | 1.02* |
Median | 0.52*** | 0.53** | 0.42*** | 0.79*** | 0.26 |
N | 1738 | 409 | 825 | 504 | |
CBA (G6) | |||||
Mean | 0.97*** | 0.75** | 0.89*** | 1.28** | 0.54 |
Median | 0.39*** | 0.37 | 0.38** | 0.57* | 0.20 |
N | 1165 | 287 | 538 | 340 | |
CBA (RoW) | |||||
Mean | 2.02*** | 1.36*** | 1.55*** | 3.33*** | 1.98* |
Median | 0.84*** | 1.14** | 0.49*** | 1.29*** | 0.15 |
N | 573 | 122 | 287 | 164 | |
Differentials | |||||
Domestic versus CBA (ALL) | |||||
Mean | 0.06 | 0.15 | 0.09 | 0.06 | |
Median | −0.01 | −0.02 | 0.07 | −0.19 | |
Domestic versus CBA (G6) | |||||
Mean | 0.42* | 0.34 | 0.32 | 0.73 | |
Median | 0.13* | 0.13 | 0.10 | 0.03 | |
Domestic versus CBA (RoW) | |||||
Mean | −0.63* | −0.27 | −0.34 | −1.32 | |
Median | −0.33** | −0.64 | 0.00 | −0.69* | |
G6 versus RoW | |||||
Mean | −1.05*** | −0.61 | −0.66 | −2.05** | |
Median | −0.45*** | −0.77** | −0.10*** | −0.72** | |
Panel B: Carhart (1997) 4-factor model | |||||
ALL | |||||
Mean | 1.56*** | 1.09*** | 1.36*** | 2.34*** | 1.25*** |
Median | 0.62*** | 0.49*** | 0.67*** | 0.62*** | 0.13 |
N | 5880 | 1545 | 2737 | 1598 | |
Domestic | |||||
Mean | 1.62*** | 1.16*** | 1.38*** | 2.52*** | 1.36*** |
Median | 0.62*** | 0.52*** | 0.71*** | 0.50*** | −0.02 |
N | 4142 | 1136 | 1912 | 1094 | |
CBA (ALL) | |||||
Mean | 1.40*** | 0.89*** | 1.33*** | 1.94*** | 1.04** |
Median | 0.62*** | 0.44*** | 0.62*** | 0.78*** | 0.34 |
N | 1738 | 409 | 825 | 504 | |
CBA (G6) | |||||
Mean | 0.99*** | 0.88** | 1.02*** | 1.05** | 0.17 |
Median | 0.50*** | 0.46* | 0.53*** | 0.51* | 0.05 |
N | 1165 | 287 | 538 | 340 | |
CBA (RoW) | |||||
Mean | 2.25*** | 0.94** | 1.93*** | 3.78*** | 2.85*** |
Median | 0.80*** | 0.41*** | 0.80*** | 1.48*** | 1.07** |
N | 573 | 122 | 287 | 164 | |
Differentials | |||||
Domestic versus CBA (ALL) | |||||
Mean | 0.22 | 0.27 | 0.05 | 0.59 | |
Median | 0.00 | 0.08 | 0.09 | −0.28 | |
Domestic versus CBA (G6) | |||||
Mean | 0.63** | 0.29 | 0.36 | 1.48** | |
Median | 0.12* | 0.06 | 0.18 | −0.01 | |
Domestic versus CBA (RoW) | |||||
Mean | −0.62* | 0.23 | −0.55 | −1.26 | |
Median | −0.18* | 0.11 | −0.09 | −0.98** | |
G6 versus RoW | |||||
Mean | −1.26*** | −0.06 | −0.91* | −2.74*** | |
Median | −0.30*** | 0.05 | −0.27 | −0.97*** | |
Panel C: Fama and French (1993) 3-factor model | |||||
ALL | |||||
Mean | 1.34*** | 1.01*** | 1.29*** | 1.73*** | 0.71** |
Median | 0.46*** | 0.45*** | 0.51*** | 0.40*** | −0.05 |
N | 5880 | 1545 | 2737 | 1598 | |
Domestic | |||||
Mean | 1.39*** | 1.10*** | 1.31*** | 1.82*** | 0.72* |
Median | 0.48*** | 0.46*** | 0.57*** | 0.30*** | −0.15 |
N | 4142 | 1136 | 1912 | 1094 | |
CBA (ALL) | |||||
Mean | 1.21*** | 0.78*** | 1.24*** | 1.53*** | 0.75 |
Median | 0.41*** | 0.32** | 0.35*** | 0.62*** | 0.30 |
N | 1738 | 409 | 825 | 504 | |
CBA (G6) | |||||
Mean | 0.85*** | 0.78** | 0.88*** | 0.85* | 0.07 |
Median | 0.31*** | 0.46* | 0.26* | 0.38 | −0.07 |
N | 1165 | 287 | 538 | 340 | |
CBA (RoW) | |||||
Mean | 1.96*** | 0.77* | 1.90*** | 2.94*** | 2.17** |
Median | 0.59*** | 0.23** | 0.47*** | 0.77*** | 0.54 |
N | 573 | 122 | 287 | 164 | |
Differentials | |||||
Domestic versus CBA (ALL) | |||||
Mean | 0.17 | 0.32 | 0.08 | 0.29 | |
Median | 0.07 | 0.14 | 0.22 | −0.32 | |
Domestic versus CBA (G6) | |||||
Mean | 0.54** | 0.32 | 0.43 | 0.97* | |
Median | 0.17 | 0.00 | 0.31 | −0.08 | |
Domestic versus CBA (RoW) | |||||
Mean | −0.57 | 0.33 | −0.59 | −1.12 | |
Median | −0.11 | 0.23 | 0.10 | −0.47** | |
G6 versus RoW | |||||
Mean | −1.11*** | 0.01 | −1.02* | −2.09** | |
Median | −0.28* | 0.23 | −0.21 | −0.38** | |
Panel D: 1 year (12 months) post-merger BHARs | |||||
ALL | |||||
Mean | −1.99*** | −3.74*** | −5.10*** | 5.04*** | 8.78*** |
Median | −6.31*** | −6.63*** | −7.80*** | −3.46*** | 3.17*** |
N | 5876 | 1543 | 2735 | 1598 | |
Domestic | |||||
Mean | −2.90*** | −4.08*** | −6.99*** | 5.47*** | 9.56*** |
Median | −7.23*** | −8.17*** | −9.41*** | −2.91** | 5.26*** |
N | 4138 | 1134 | 1910 | 1094 | |
CBA (ALL) | |||||
Mean | 0.19 | −2.80 | −0.71 | 4.10 | 6.90* |
Median | −4.04*** | −3.75** | −4.02*** | −4.28** | −0.53 |
N | 1738 | 409 | 825 | 504 | |
CBA (G6) | |||||
Mean | 0.60 | −4.23** | −2.49 | 9.58** | 13.82*** |
Median | −3.22*** | −3.58* | −4.17*** | −1.18 | 2.40 |
N | 1165 | 287 | 538 | 340 | |
CBA (RoW) | |||||
Mean | −0.64 | 0.58 | 2.62 | −7.25** | −7.83 |
Median | −5.82*** | −4.98* | −3.94 | −9.20*** | −4.23 |
N | 573 | 122 | 287 | 164 | |
Differentials | |||||
Domestic versus CBA (ALL) | |||||
Mean | −3.09** | −1.29 | −6.28*** | 1.37 | |
Median | −3.19** | −4.41 | −5.39*** | 1.37 | |
Domestic versus CBA (G6) | |||||
Mean | −3.50** | 0.15 | −4.50** | −4.11 | |
Median | −4.01** | −4.59 | −5.24** | −1.73 | |
Domestic versus CBA (RoW) | |||||
Mean | −2.26 | −4.66 | −9.61** | 12.72*** | |
Median | −1.41 | −3.19 | −5.47** | 6.29** | |
G6 versus RoW | |||||
Mean | 1.24 | −4.81 | −5.11 | 16.84*** | |
Median | 2.60 | 1.40 | −0.23 | 8.02** | |
Panel E: 5 years (60 months) post-merger BHARs | |||||
ALL | |||||
Mean | −5.99*** | −15.00*** | −7.10*** | 4.66 | 19.66*** |
Median | −30.35*** | −43.75*** | −30.35*** | −16.86*** | 26.90*** |
N | 5845 | 1539 | 2719 | 1587 | |
Domestic | |||||
Mean | −7.55*** | −15.70*** | −10.71*** | 6.40 | 22.10*** |
Median | −35.42*** | −47.25*** | −36.44*** | −21.58*** | 25.66*** |
N | 4118 | 1130 | 1899 | 1089 | |
CBA (ALL) | |||||
Mean | −2.26 | −13.06** | 1.24 | 0.86 | 13.92* |
Median | −18.37*** | −32.79*** | −13.96*** | −11.85*** | 20.94*** |
N | 1727 | 409 | 820 | 498 | |
CBA (G6) | |||||
Mean | −1.41 | −15.60** | 4.39 | 1.45 | 17.05* |
Median | −18.64*** | −40.01*** | −11.28*** | −12.20*** | 27.81*** |
N | 1159 | 287 | 536 | 336 | |
CBA (RoW) | |||||
Mean | −3.98 | −7.10 | −4.70 | −0.37 | 6.73 |
Median | −17.55*** | −21.32*** | −19.33*** | −10.47 | 10.85* |
N | 568 | 122 | 284 | 162 | |
Differentials | |||||
Domestic versus CBA (ALL) | |||||
Mean | −5.30 | −2.64 | −11.95** | 5.54 | |
Median | −17.05*** | −14.46** | −22.48*** | −9.73 | |
Domestic versus CBA (G6) | |||||
Mean | −6.14 | −0.10 | −15.10** | 4.95 | |
Median | −16.78*** | −7.24 | −25.16*** | −9.39 | |
Domestic versus CBA (RoW) | |||||
Mean | −3.57 | −8.60 | −6.00 | 6.77 | |
Median | −17.87*** | −25.93** | −17.11** | −11.11 | |
G6 versus RoW | |||||
Mean | 2.57 | −8.50 | 9.10 | 1.83 | |
Median | −1.09 | −18.69 | 8.05 | −1.73 |
4.2 EMVCs and acquirers’ short- and long-run gains
4.3 Gains of acquirers: a cross-sectional analysis
Model: sample | (1) All | (2) All | (3) All | (4) CBA | (5) CBA | (6) CBA | (7) CBA | (8) CBA | (9) CBA | (10) CBA |
---|---|---|---|---|---|---|---|---|---|---|
High-EMVCs | 0.008*** (2.84) | 0.008*** (2.84) | 0.003 (1.18) | 0.009** (2.10) | 0.014** (2.12) | 0.002 (0.37) | 0.008 (1.07) | 0.134** (2.35) | −0.037 (−0.62) | −0.048 (−0.57) |
Stock | 0.009** (2.00) | 0.009** (2.02) | −0.006 (−0.86) | 0.011 (0.92) | 0.021* (1.80) | 0.007 (0.65) | 0.021* (1.78) | 0.100 (1.09) | −0.177* (−1.72) | −0.159 (−0.94) |
CBA | 0.001 (0.51) | 0.002 (0.57) | ||||||||
G6 | −0.002 (−0.58) | |||||||||
RoW | 0.008* (1.77) | 0.011** (2.26) | 0.010* (1.69) | 0.008* (1.82) | 0.006 (1.00) | 0.129*** (2.63) | 0.134** (1.98) | 0.085 (0.87) | ||
High-EMVCs × stock | 0.053*** (5.55) | −0.008 (−0.004) | −0.150 (−0.79) | −0.255 (−1.01) | ||||||
High-EMVCs × RoW | 0.014* (1.80) | 0.018* (1.88) | −0.319*** (−2.98) | 0.074 (0.53) | 0.130 (0.75) | |||||
Effect. ex. rate | 0.008*** (2.58) | 0.008*** (2.97) | 0.007*** (2.84) | 0.001 (0.28) | −0.001 (−0.02) | 0.001 (0.20) | −0.001 (−0.02) | 0.006 (0.18) | 0.039 (0.72) | 0.029 (0.41) |
Diversifying | 0.001 (0.22) | 0.001 (0.24) | 0.001 (0.17) | −0.001 (−0.26) | 0.002 (0.35) | 0.002 (0.37) | 0.002 (0.34) | −0.004 (−0.08) | −0.116** (−2.09) | −0.171** (−2.32) |
Relative size | 0.006*** (5.12) | 0.006*** (5.14) | 0.006*** (5.13) | 0.005*** (4.17) | 0.009*** (2.62) | 0.006*** (4.57) | 0.009*** (5.41) | 0.016 (1.29) | 0.031** (1.96) | 0.017 (0.77) |
Acquirer age | 0.001 (0.54) | 0.001 (0.58) | 0.001 (0.53) | −0.001 (−0.61) | −0.002 (−0.69) | −0.001 (−0.39) | −0.002 (−0.69) | −0.001 (−0.06) | 0.060** (2.45) | 0.079*** (2.70) |
Acquirer MTBV | −0.001 (−0.08) | −0.001 (−0.11) | 0.001 (0.29) | −0.001** (−2.03) | −0.001** (−2.25) | −0.001* (−1.93) | −0.001** (−2.17) | −0.003*** (−4.98) | 0.001 (0.39) | −0.001 (−0.67) |
Unlisted target | 0.033*** (6.28) | 0.033*** (6.27) | 0.033*** (6.32) | 0.015** (2.01) | 0.018** (1.96) | 0.013* (1.71) | 0.019** (2.05) | 0.029 (0.49) | 0.043 (0.60) | 0.075 (0.84) |
Liquidity | 0.023*** (2.82) | 0.022*** (2.77) | 0.022*** (2.78) | 0.002 (0.09) | −0.039** (−2.25) | 0.003 (0.19) | −0.038** (−2.24) | 0.276** (2.24) | 0.023 (0.14) | −0.119 (−0.61) |
Political stability | 0.009 (1.00) | 0.009 (0.98) | 0.002 (0.03) | 0.004 (0.05) | −0.094 (−0.72) | |||||
Rule of law | −0.021** (−2.00) | −0.021** (−2.07) | −0.056 (−0.51) | −0.053 (−0.38) | 0.061 (0.35) | |||||
Crisis | −0.017** (−2.10) | −0.017** (−2.12) | −0.017** (−2.17) | 0.015 (1.40) | 0.012 (1.03) | 0.012 (1.17) | 0.011 (0.96) | −0.006 (−0.09) | 0.119 (1.04) | 0.274 (1.48) |
Crisis × CBA | 0.018* (1.88) | 0.017* (1.72) | 0.017* (1.83) | |||||||
Crisis × stock | 0.188*** (17.14) | 0.188*** (17.14) | 0.195*** (13.93) | |||||||
Crisis × diversified | −0.001 (−0.07) | −0.001 (−0.02) | −0.001 (−0.01) | −0.022 (−1.40) | −0.011 (−0.74) | −0.015 (−1.13) | −0.011 (−0.74) | −0.023 (−0.30) | 0.052 (0.38) | −0.014 (−0.07) |
Crisis × RoW | −0.009 (−0.66) | −0.020 (−1.48) | −0.006 (−0.45) | −0.016 (−1.22) | −0.262*** (−3.05) | −0.300** (−2.01) | −0.359* (−1.80) | |||
Intercept | −0.013 (−0.95) | −0.013 (−0.96) | −0.011 (−0.84) | 0.019 (1.09) | 0.057** (2.16) | 0.020 (1.08) | 0.057** (2.20) | 0.072 (0.36) | −0.388* (−1.78) | −0.513* (−1.76) |
F-stat | 10.19*** | 9.84*** | 11.45*** | 2.70*** | 3.74*** | 2.81*** | 3.62*** | 3.10*** | 1.51* | 1.29 |
Adj. R2 (%) | 2.71 | 2.78 | 3.21 | 2.30 | 5.45 | 2.40 | 5.61 | 5.14 | 2.57 | 2.21 |
Mean VIF | 1.57 | 1.54 | 1.60 | 1.65 | 2.12 | 1.49 | 2.16 | 2.13 | 2.12 | 2.11 |
N | 5880 | 5880 | 5880 | 1738 | 990 | 1738 | 990 | 990 | 988 | 987 |