Table 1 CSR underinvestment and deal...

Table 1

CSR underinvestment and deal failure likelihood

DV: Fail	Logistic		Probit		VIF
DV: Fail	Coeff.	S.E.	Coeff.	S.E.
Tgt_Shortfall	−0.416	(0.265)	−0.257*	(0.145)	1.070
Acq_Shortfall	−0.130**	(0.064)	−0.077**	(0.037)	1.060
Tgt_Pub	0.401	(0.349)	0.259	(0.211)	1.190
Tgt_Shortfall × Tgt_Pub	0.452*	(0.267)	0.280*	(0.146)	–
Acq_Pub	−0.541	(0.395)	−0.327	(0.232)	1.080
Acq_Shortfall × Acq_Pub	0.900**	(0.366)	0.548**	(0.217)	–
Eco_Growth	−3.220***	(0.989)	−2.001***	(0.604)	1.050
Deal_Size	−0.040**	(0.016)	−0.025***	(0.009)	1.100
Tgt_Lev	0.078	(0.106)	0.048	(0.066)	1.050
Tgt_ROA	0.001	(0.011)	0.001	(0.007)	1.170
Tgt_Size	−0.070	(0.080)	−0.047	(0.048)	1.470
Acq_Lev	0.081	(0.154)	0.049	(0.092)	1.180
Acq_ROA	−0.001	(0.014)	−0.001	(0.008)	1.100
Acq_Size	0.158	(0.072)	0.099**	(0.044)	1.370
Constant	20.316***	(6.977)	12.682***	(4.285)	–
Model diagnostics
Observations	310		310
Pseudo-R²	0.123		0.124
Log-pseudolikelihood	−185.430		−185.213
LR-χ2 (df = 14)	145.360***		145.790***
Prob > LR-χ2	0.000		0.000
Wald-χ2 (df = 14)	47.450***		51.820***
Prob > Wald-χ2	0.000		0.000
Industry and year FE	Yes		Yes

DV: Fail	Logistic		Probit		VIF
DV: Fail	Coeff.	S.E.	Coeff.	S.E.
Tgt_Shortfall	−0.416	(0.265)	−0.257*	(0.145)	1.070
Acq_Shortfall	−0.130**	(0.064)	−0.077**	(0.037)	1.060
Tgt_Pub	0.401	(0.349)	0.259	(0.211)	1.190
Tgt_Shortfall × Tgt_Pub	0.452*	(0.267)	0.280*	(0.146)	–
Acq_Pub	−0.541	(0.395)	−0.327	(0.232)	1.080
Acq_Shortfall × Acq_Pub	0.900**	(0.366)	0.548**	(0.217)	–
Eco_Growth	−3.220***	(0.989)	−2.001***	(0.604)	1.050
Deal_Size	−0.040**	(0.016)	−0.025***	(0.009)	1.100
Tgt_Lev	0.078	(0.106)	0.048	(0.066)	1.050
Tgt_ROA	0.001	(0.011)	0.001	(0.007)	1.170
Tgt_Size	−0.070	(0.080)	−0.047	(0.048)	1.470
Acq_Lev	0.081	(0.154)	0.049	(0.092)	1.180
Acq_ROA	−0.001	(0.014)	−0.001	(0.008)	1.100
Acq_Size	0.158	(0.072)	0.099**	(0.044)	1.370
Constant	20.316***	(6.977)	12.682***	(4.285)	–
Model diagnostics
Observations	310		310
Pseudo-R²	0.123		0.124
Log-pseudolikelihood	−185.430		−185.213
LR-χ2 (df = 14)	145.360***		145.790***
Prob > LR-χ2	0.000		0.000
Wald-χ2 (df = 14)	47.450***		51.820***
Prob > Wald-χ2	0.000		0.000
Industry and year FE	Yes		Yes

Note(s): Table 1 presents the effects of CSR underinvestment on M&A deal failure for non-financial deals, estimated using equation (1). VIF scores not reported for interaction terms and intercepts. Robust standard errors are reported in parentheses. *, ** and *** indicate significance of 10%, 5% and 1% respectively

Source(s): Author's calculations

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