Table 3

Variables and correlation

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1 Operating loss1.00                   
2 Ultimate owner0.09 (0.00)1.00                  
3 Ownership concentration−0.10 (0.00)0.08 (0.00)1.00                 
4 Leverage0.21 (0.00)0.32 (0.00)−0.05 (0.00)1.00                
5 Current liability ratio−0.03 (0.01)−0.12 (0.00)−0.00 (0.92)−0.18 (0.00)1.00               
6 Year since acquisitions−0.02 (0.03)0.06 (0.00)−0.07 (0.00)0.01 (0.24)−0.02 (0.05)1.00              
7 Event types0.02 (0.08)0.00 (0.87)0.04 (0.00)0.00 (0.82)−0.06 (0.00)0.00 (0.97)1.00             
8 Targets0.00 (0.91)−0.01 (0.41)−0.03 (0.03)0.12 (0.00)−0.04 (0.00)−0.06 (0.00)0.05 (0.00)1.00            
9 Cash payment0.03 (0.03)0.08 (0.00)0.04 (0.00)0.09 (0.00)−0.05 (0.00)−0.04 (0.00)0.05 (0.00)0.07 (0.00)1.00           
10 No. of acquisitions0.05 (0.00)0.06 (0.00)−0.18 (0.00)0.20 (0.00)−0.16 (0.00)−0.13 (0.00)0.06 (0.00)0.10 (0.00)0.02 (0.19)1.00          
11 Firm size−0.02 (0.05)0.27 (0.00)0.12 (0.00)0.37 (0.00)−0.15 (0.00)0.09 (0.00)0.09 (0.00)0.07 (0.00)0.02 (0.08)0.24 (0.00)1.00         
12 Tangible asset ratio−0.05 (0.00)0.16 (0.00)0.08 (0.00)0.11 (0.00)0.01 (0.33)0.08 (0.00)0.01 (0.30)−0.07 (0.00)−0.11 (0.00)−0.11 (0.00)0.09 (0.00)1.00        
13 Firm age0.07 (0.00)0.09 (0.00)−0.30 (0.00)0.12 (0.00)−0.10 (0.00)0.11 (0.00)0.01 (0.33)0.07 (0.00)0.11 (0.00)0.33 (0.00)0.12 (0.00)−0.08 (0.00)1.00       
14 Board independence0.02 (0.13)−0.08 (0.00)0.05 (0.00)−0.05 (0.00)−0.01 (0.24)0.01 (0.41)0.03 (0.00)0.03 (0.01)−0.04 (0.00)0.02 (0.07)−0.01 (0.33)−0.03 (0.01)0.01 (0.21)1.00      
15 Number of directors−0.02 (0.13)0.26 (0.00)0.01 (0.41)0.19 (0.00)−0.07 (0.00)0.02 (0.15)0.01 (0.23)−0.00 (0.78)0.04 (0.00)−0.01 (0.40)0.28 (0.00)0.08 (0.00) 0.02 (0.13)0.30 (0.00)1.00     
16 Industry median ROA−0.18 (0.00)−0.05 (0.00)−0.02 (0.18)−0.15 (0.00)0.03 (0.01)0.03 (0.00)0.03 (0.01)0.02 (0.15)−0.03 (0.01)0.03 (0.00)−0.02 (0.03)−0.08 (0.00)0.03 (0.00)0.02 (0.19)0.01 (0.38)1.00    
17 Incentive schemes−0.08 (0.00)−0.25 (0.00)−0.03 (0.01)−0.15 (0.00)0.03 (0.00)−0.00 (0.78)0.00 (0.81)0.00 (0.99)−0.05 (0.00)0.02 (0.04)−0.03 (0.01)−0.11 (0.00)−0.00 (0.69)0.07 (0.00)−0.10 (0.00)0.05 (0.00)1.00   
18 Year−0.01 (0.52)−0.29 (0.00)−0.12 (0.00)−0.22 (0.00)−0.07 (0.00)0.11 (0.00)0.07 (0.00)0.02 (0.04)0.03 (0.02)0.33 (0.00)−0.00 (0.77)−0.21 (0.00)0.38 (0.00)0.15 (0.00)−0.19 (0.00)0.08 (0.00)0.23 (0.00)1.00  
19 Region0.06 (0.00)0.19 (0.00)−0.06 (0.00)0.13 (0.00)−0.12 (0.00)−0.00 (0.95)0.03 (0.01)−0.01 (0.24)0.10 (0.00)0.06 (0.00)0.05 (0.00)0.00 (0.93)0.03 (0.02)−0.03 (0.03)0.10 (0.00)0.01 (0.41)−0.12 (0.00)−0.11 (0.00)1.00 
20 Operating loss five-year prior0.26 (0.00)0.08 (0.00)−0.12 (0.00)0.16 (0.00)−0.00 (0.90)−0.10 (0.00)0.03 (0.00)0.06 (0.00)0.12 (0.00)0.19 (0.00)−0.01 (0.40)−0.05 (0.00)0.17 (0.00)0.01 (0.27)−0.02 (0.13)−0.07 (0.00)−0.07 (0.00)0.11 (0.00)0.07 (0.00)1.00

Source(s): CSMAR 2003–2014

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