Table 6 Regression results (1) (2) (3)...

Table 6

Regression results

	(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)
	OL	OL	OL	OL	OL	OL	ML	GEE
Main effects
SOE	1.316*** (2.77)	1.481*** (3.88)	1.525*** (4.08)	1.525*** (3.88)	1.485*** (3.70)	1.648*** (4.68)	1.652*** (3.89)	1.471*** (3.76)
Ownership concentration	0.980*** (−6.32)	0.983*** (−5.28)		0.983*** (−4.25)	0.981*** (−5.36)	0.983*** (−4.98)	0.978*** (−5.35)	0.982*** (−5.33)
Leverage	1.036*** (12.19)	1.039*** (13.08)	1.039*** (13.22)	1.041*** (12.63)	1.033*** (9.31)	1.039*** (12.27)	1.050*** (11.42)	1.040*** (13.28)
Controls
Current liability ratio		1.000 (−0.03)	1.000 (0.07)	1.000 (0.02)	0.999 (−0.27)	1.002 (0.67)	1.001 (0.20)	1.000 (0.10)
Year since acquisitions
2		0.960 (−0.39)	0.970 (−0.29)	0.940 (−0.56)	1.029 (0.25)	0.984 (−0.16)	1.093 (0.80)	1.024 (0.25)
3		1.010 (0.07)	1.026 (0.19)	1.027 (0.18)	1.060 (0.39)	1.037 (0.26)	1.268 (1.52)	1.134 (1.00)
4		1.100 (0.53)	1.125 (0.65)	0.977 (−0.12)	1.214 (1.04)		1.500** (2.04)	1.283 (1.57)
5		0.790 (−0.93)	0.810 (−0.83)	0.763 (−1.01)	0.799 (−0.83)		1.097 (0.33)	0.972 (−0.13)
Event types: mergers		1.389 (1.05)	1.373 (1.02)	1.213 (0.55)	1.204 (0.50)	1.301 (0.75)	1.484 (1.06)	1.406 (1.12)
Mergers and acquisitions		1.910* (1.65)	1.821 (1.50)	1.993 (1.55)	1.697 (1.12)	1.814 (1.45)	2.789** (2.38)	2.069** (2.00)
Targets: equities		0.881 (−1.30)	0.886 (−1.24)	0.942 (−0.58)	0.872 (−1.31)	0.945 (−0.55)	0.924 (−0.69)	0.911 (−0.98)
Assets and equities		0.742** (−1.98)	0.763* (−1.81)	0.716** (−1.99)	0.807 (−1.37)	0.818 (−1.31)	0.756 (−1.61)	0.781* (−1.72)
Cash payment		1.228 (1.51)	1.250 (1.63)	1.319* (1.90)	1.394** (2.16)	1.249 (1.56)	1.289 (1.59)	1.235 (1.57)
No. of acquisitions		0.951 (−1.47)	0.958 (−1.25)	0.944 (−1.55)	0.964 (−1.01)	0.950 (−1.44)
Firm size		0.775*** (−6.24)	0.772*** (−6.24)	0.755*** (−6.37)	0.775*** (−5.67)	0.777*** (−5.91)	0.705*** (−6.65)	0.763*** (−6.66)
Tangible asset ratio		0.960*** (−6.16)	0.960*** (−6.08)	0.961*** (−5.72)	0.964*** (−4.95)	0.963*** (−5.62)	0.956*** (−5.48)	0.962*** (−5.91)
Firm age		0.992 (−0.78)	0.997 (−0.30)	0.992 (−0.66)	0.988 (−1.08)	0.989 (−0.96)	0.996 (−0.34)	0.993 (−0.61)
Board independence		1.012 (1.58)	1.013 (1.60)	1.012 (1.40)	1.011 (1.33)	1.017** (2.07)	1.012 (1.37)	1.011 (1.50)
Number of directors		0.936** (−2.48)	0.933** (−2.57)	0.939** (−2.17)	0.931** (−2.49)	0.935** (−2.47)	0.922** (−2.40)	0.936** (−2.46)
Industry median ROA		0.767*** (−8.20)	0.765*** (−8.28)	0.765*** (−7.48)	0.771*** (−7.34)	0.768*** (−7.43)	0.717*** (−8.18)	0.762*** (−8.35)
Incentive schemes		0.475*** (−3.71)	0.478*** (−3.69)	0.460*** (−3.56)	0.442*** (−3.94)	0.474*** (−3.36)	0.441*** (−3.67)	0.488*** (−3.79)
Year: 2004		1.111 (0.34)	1.077 (0.24)	1.079 (0.25)	0.883 (−0.39)	1.106 (0.33)	1.097 (0.27)	1.091 (0.30)
2005		1.619 (1.57)	1.550 (1.42)	1.526 (1.34)	1.290 (0.82)	1.601 (1.53)	1.635 (1.40)	1.544 (1.48)
2006		0.818 (−0.64)	0.797 (−0.71)	0.803 (−0.68)	0.687 (−1.15)	0.855 (−0.49)	0.837 (−0.49)	0.825 (−0.64)
2007		0.689 (−1.14)	0.683 (−1.16)	0.650 (−1.26)	0.609 (−1.49)	0.769 (−0.79)	0.725 (−0.86)	0.708 (−1.12)
2008		1.398 (1.14)	1.382 (1.09)	1.338 (0.96)	1.265 (0.80)	1.457 (1.27)	1.431 (1.04)	1.331 (1.01)
2009		1.026 (0.08)	1.013 (0.04)	0.997 (−0.01)	0.859 (−0.49)	0.968 (−0.10)	1.079 (0.21)	1.005 (0.02)
2010		0.685 (−1.15)	0.679 (−1.17)	0.668 (−1.17)	0.488** (−2.10)	0.717 (−0.99)	0.732 (−0.82)	0.692 (−1.18)
2011		0.963 (−0.12)	0.944 (−0.18)	0.831 (−0.56)	0.829 (−0.59)	0.962 (−0.12)	1.051 (0.14)	0.948 (−0.18)
2012		2.142** (2.52)	2.061** (2.38)	2.084** (2.35)	1.892** (2.12)	2.089** (2.37)	2.467** (2.53)	2.011** (2.42)
2013		1.383 (1.05)	1.315 (0.89)	1.311 (0.84)	1.213 (0.62)	1.475 (1.23)	1.560 (1.24)	1.335 (0.99)
2014		1.185 (0.55)	1.118 (0.36)	1.186 (0.53)	0.983 (−0.06)	1.317 (0.87)	1.333 (0.80)	1.143 (0.46)
Region: middle		0.964 (−0.32)	0.971 (−0.25)	0.964 (−0.31)	0.938 (−0.52)	0.977 (−0.20)	0.962 (−0.27)	0.974 (−0.22)
West		1.174 (1.37)	1.194 (1.52)	1.166 (1.23)	1.202 (1.45)	1.150 (1.12)	1.228 (1.39)	1.165 (1.28)
Operating loss five-year before		4.024*** (10.86)	4.127*** (11.08)	4.337*** (10.70)	4.441*** (10.49)		2.347*** (5.18)	2.816*** (8.08)
Herfindahl Index			0.981*** (−4.67)
Operating loss three-year before						4.087*** (10.33)
Observations	7376	7364	7364	6631	6629	6498	7364	7364
No. of groups							1453	1453
Pseudo R-sq	0.0792	0.193	0.191	0.197	0.168	0.193
ζj sd							1.048
ρ variance due to ζj							0.250

	(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)
	OL	OL	OL	OL	OL	OL	ML	GEE
Main effects
SOE	1.316*** (2.77)	1.481*** (3.88)	1.525*** (4.08)	1.525*** (3.88)	1.485*** (3.70)	1.648*** (4.68)	1.652*** (3.89)	1.471*** (3.76)
Ownership concentration	0.980*** (−6.32)	0.983*** (−5.28)		0.983*** (−4.25)	0.981*** (−5.36)	0.983*** (−4.98)	0.978*** (−5.35)	0.982*** (−5.33)
Leverage	1.036*** (12.19)	1.039*** (13.08)	1.039*** (13.22)	1.041*** (12.63)	1.033*** (9.31)	1.039*** (12.27)	1.050*** (11.42)	1.040*** (13.28)
Controls
Current liability ratio		1.000 (−0.03)	1.000 (0.07)	1.000 (0.02)	0.999 (−0.27)	1.002 (0.67)	1.001 (0.20)	1.000 (0.10)
Year since acquisitions
2		0.960 (−0.39)	0.970 (−0.29)	0.940 (−0.56)	1.029 (0.25)	0.984 (−0.16)	1.093 (0.80)	1.024 (0.25)
3		1.010 (0.07)	1.026 (0.19)	1.027 (0.18)	1.060 (0.39)	1.037 (0.26)	1.268 (1.52)	1.134 (1.00)
4		1.100 (0.53)	1.125 (0.65)	0.977 (−0.12)	1.214 (1.04)		1.500** (2.04)	1.283 (1.57)
5		0.790 (−0.93)	0.810 (−0.83)	0.763 (−1.01)	0.799 (−0.83)		1.097 (0.33)	0.972 (−0.13)
Event types: mergers		1.389 (1.05)	1.373 (1.02)	1.213 (0.55)	1.204 (0.50)	1.301 (0.75)	1.484 (1.06)	1.406 (1.12)
Mergers and acquisitions		1.910* (1.65)	1.821 (1.50)	1.993 (1.55)	1.697 (1.12)	1.814 (1.45)	2.789** (2.38)	2.069** (2.00)
Targets: equities		0.881 (−1.30)	0.886 (−1.24)	0.942 (−0.58)	0.872 (−1.31)	0.945 (−0.55)	0.924 (−0.69)	0.911 (−0.98)
Assets and equities		0.742** (−1.98)	0.763* (−1.81)	0.716** (−1.99)	0.807 (−1.37)	0.818 (−1.31)	0.756 (−1.61)	0.781* (−1.72)
Cash payment		1.228 (1.51)	1.250 (1.63)	1.319* (1.90)	1.394** (2.16)	1.249 (1.56)	1.289 (1.59)	1.235 (1.57)
No. of acquisitions		0.951 (−1.47)	0.958 (−1.25)	0.944 (−1.55)	0.964 (−1.01)	0.950 (−1.44)
Firm size		0.775*** (−6.24)	0.772*** (−6.24)	0.755*** (−6.37)	0.775*** (−5.67)	0.777*** (−5.91)	0.705*** (−6.65)	0.763*** (−6.66)
Tangible asset ratio		0.960*** (−6.16)	0.960*** (−6.08)	0.961*** (−5.72)	0.964*** (−4.95)	0.963*** (−5.62)	0.956*** (−5.48)	0.962*** (−5.91)
Firm age		0.992 (−0.78)	0.997 (−0.30)	0.992 (−0.66)	0.988 (−1.08)	0.989 (−0.96)	0.996 (−0.34)	0.993 (−0.61)
Board independence		1.012 (1.58)	1.013 (1.60)	1.012 (1.40)	1.011 (1.33)	1.017** (2.07)	1.012 (1.37)	1.011 (1.50)
Number of directors		0.936** (−2.48)	0.933** (−2.57)	0.939** (−2.17)	0.931** (−2.49)	0.935** (−2.47)	0.922** (−2.40)	0.936** (−2.46)
Industry median ROA		0.767*** (−8.20)	0.765*** (−8.28)	0.765*** (−7.48)	0.771*** (−7.34)	0.768*** (−7.43)	0.717*** (−8.18)	0.762*** (−8.35)
Incentive schemes		0.475*** (−3.71)	0.478*** (−3.69)	0.460*** (−3.56)	0.442*** (−3.94)	0.474*** (−3.36)	0.441*** (−3.67)	0.488*** (−3.79)
Year: 2004		1.111 (0.34)	1.077 (0.24)	1.079 (0.25)	0.883 (−0.39)	1.106 (0.33)	1.097 (0.27)	1.091 (0.30)
2005		1.619 (1.57)	1.550 (1.42)	1.526 (1.34)	1.290 (0.82)	1.601 (1.53)	1.635 (1.40)	1.544 (1.48)
2006		0.818 (−0.64)	0.797 (−0.71)	0.803 (−0.68)	0.687 (−1.15)	0.855 (−0.49)	0.837 (−0.49)	0.825 (−0.64)
2007		0.689 (−1.14)	0.683 (−1.16)	0.650 (−1.26)	0.609 (−1.49)	0.769 (−0.79)	0.725 (−0.86)	0.708 (−1.12)
2008		1.398 (1.14)	1.382 (1.09)	1.338 (0.96)	1.265 (0.80)	1.457 (1.27)	1.431 (1.04)	1.331 (1.01)
2009		1.026 (0.08)	1.013 (0.04)	0.997 (−0.01)	0.859 (−0.49)	0.968 (−0.10)	1.079 (0.21)	1.005 (0.02)
2010		0.685 (−1.15)	0.679 (−1.17)	0.668 (−1.17)	0.488** (−2.10)	0.717 (−0.99)	0.732 (−0.82)	0.692 (−1.18)
2011		0.963 (−0.12)	0.944 (−0.18)	0.831 (−0.56)	0.829 (−0.59)	0.962 (−0.12)	1.051 (0.14)	0.948 (−0.18)
2012		2.142** (2.52)	2.061** (2.38)	2.084** (2.35)	1.892** (2.12)	2.089** (2.37)	2.467** (2.53)	2.011** (2.42)
2013		1.383 (1.05)	1.315 (0.89)	1.311 (0.84)	1.213 (0.62)	1.475 (1.23)	1.560 (1.24)	1.335 (0.99)
2014		1.185 (0.55)	1.118 (0.36)	1.186 (0.53)	0.983 (−0.06)	1.317 (0.87)	1.333 (0.80)	1.143 (0.46)
Region: middle		0.964 (−0.32)	0.971 (−0.25)	0.964 (−0.31)	0.938 (−0.52)	0.977 (−0.20)	0.962 (−0.27)	0.974 (−0.22)
West		1.174 (1.37)	1.194 (1.52)	1.166 (1.23)	1.202 (1.45)	1.150 (1.12)	1.228 (1.39)	1.165 (1.28)
Operating loss five-year before		4.024*** (10.86)	4.127*** (11.08)	4.337*** (10.70)	4.441*** (10.49)		2.347*** (5.18)	2.816*** (8.08)
Herfindahl Index			0.981*** (−4.67)
Operating loss three-year before						4.087*** (10.33)
Observations	7376	7364	7364	6631	6629	6498	7364	7364
No. of groups							1453	1453
Pseudo R-sq	0.0792	0.193	0.191	0.197	0.168	0.193
ζj sd							1.048
ρ variance due to ζj							0.250

Note(s): Exponentiated coefficients

∗p < 0.1; ∗ ∗ p < 0.05; ∗ ∗ ∗p < 0.01

Source(s): CSMAR 2003–2014

[ViewLarge]

Sharing Unavailable