Regression results by the extent of operating loss
| (I) | (II) | (III) | |
|---|---|---|---|
| Loss> 1st quartile | > Median | > 3rd quartile | |
| Main effects | |||
| SOE | 1.394*** (2.90) | 1.274* (1.76) | 1.514** (2.25) |
| Ownership concentration | 0.984*** (−4.16) | 0.983*** (−3.46) | 0.973*** (−4.23) |
| Leverage | 1.042*** (12.01) | 1.048*** (10.79) | 1.056*** (9.80) |
| Controls | |||
| Current liability ratio | 1.002 (0.73) | 1.005 (1.14) | 1.015** (2.54) |
| Year since acquisitions | Not displayed | ||
| (−0.24) | (−0.22) | (0.74) | |
| Event types: mergers | 1.873* (1.86) | 2.783*** (2.75) | 2.612* (1.85) |
| Mergers and acquisitions | 2.390** (2.17) | 1.660 (0.97) | 2.165 (1.12) |
| Targets: equities | 0.815* (−1.92) | 0.774** (−2.11) | 0.680** (−2.25) |
| Assets and equities | 0.719** (−2.01) | 0.711* (−1.79) | 0.578** (−2.15) |
| Noncash | 0.823 (−1.26) | 0.764 (−1.50) | 0.838 (−0.71) |
| Cash payment | 1.000 (.) | 1.000 (.) | 1.000 (.) |
| No. of acquisitions | 0.943 (−1.46) | 0.894** (−2.02) | 0.928 (−0.84) |
| Firm size | 0.734*** (−6.47) | 0.738*** (−5.32) | 0.728*** (−4.50) |
| Tangible asset ratio | 0.960*** (−6.00) | 0.955*** (−5.73) | 0.955*** (−4.24) |
| Firm age | 0.990 (−0.88) | 0.987 (−0.90) | 0.965* (−1.69) |
| Board independence | 1.009 (1.00) | 1.009 (0.88) | 1.009 (0.52) |
| Number of directors | 0.943** (−2.02) | 0.944* (−1.67) | 0.874** (−2.52) |
| Industry median ROA | 0.775*** (−7.41) | 0.786*** (−6.17) | 0.815*** (−3.92) |
| Incentive schemes | 0.447*** (−3.59) | 0.418*** (−3.07) | 0.409* (−1.91) |
| Year | Not displayed | ||
| (−0.16) | (0.85) | (0.06) | |
| Region: middle | 0.973 (−0.21) | 0.966 (−0.22) | 1.091 (0.46) |
| West | 1.115 (0.82) | 1.132 (0.79) | 1.091 (0.40) |
| Operating loss five-year before | 4.398*** (10.82) | 3.528*** (7.97) | 3.995*** (7.15) |
| Observations | 7364 | 7364 | 7364 |
| No. of groups | |||
| Pseudo R-sq | 0.203 | 0.198 | 0.232 |
| (I) | (II) | (III) | |
|---|---|---|---|
| Loss | |||
| SOE | 1.394*** (2.90) | 1.274* (1.76) | 1.514** (2.25) |
| Ownership concentration | 0.984*** (−4.16) | 0.983*** (−3.46) | 0.973*** (−4.23) |
| Leverage | 1.042*** (12.01) | 1.048*** (10.79) | 1.056*** (9.80) |
| Current liability ratio | 1.002 (0.73) | 1.005 (1.14) | 1.015** (2.54) |
| Year since acquisitions | Not displayed | ||
| (−0.24) | (−0.22) | (0.74) | |
| Event types: mergers | 1.873* (1.86) | 2.783*** (2.75) | 2.612* (1.85) |
| Mergers and acquisitions | 2.390** (2.17) | 1.660 (0.97) | 2.165 (1.12) |
| Targets: equities | 0.815* (−1.92) | 0.774** (−2.11) | 0.680** (−2.25) |
| Assets and equities | 0.719** (−2.01) | 0.711* (−1.79) | 0.578** (−2.15) |
| Noncash | 0.823 (−1.26) | 0.764 (−1.50) | 0.838 (−0.71) |
| Cash payment | 1.000 (.) | 1.000 (.) | 1.000 (.) |
| No. of acquisitions | 0.943 (−1.46) | 0.894** (−2.02) | 0.928 (−0.84) |
| Firm size | 0.734*** (−6.47) | 0.738*** (−5.32) | 0.728*** (−4.50) |
| Tangible asset ratio | 0.960*** (−6.00) | 0.955*** (−5.73) | 0.955*** (−4.24) |
| Firm age | 0.990 (−0.88) | 0.987 (−0.90) | 0.965* (−1.69) |
| Board independence | 1.009 (1.00) | 1.009 (0.88) | 1.009 (0.52) |
| Number of directors | 0.943** (−2.02) | 0.944* (−1.67) | 0.874** (−2.52) |
| Industry median ROA | 0.775*** (−7.41) | 0.786*** (−6.17) | 0.815*** (−3.92) |
| Incentive schemes | 0.447*** (−3.59) | 0.418*** (−3.07) | 0.409* (−1.91) |
| Year | Not displayed | ||
| (−0.16) | (0.85) | (0.06) | |
| Region: middle | 0.973 (−0.21) | 0.966 (−0.22) | 1.091 (0.46) |
| West | 1.115 (0.82) | 1.132 (0.79) | 1.091 (0.40) |
| Operating loss five-year before | 4.398*** (10.82) | 3.528*** (7.97) | 3.995*** (7.15) |
| Observations | 7364 | 7364 | 7364 |
| No. of groups | |||
| Pseudo | 0.203 | 0.198 | 0.232 |
Note(s): Exponentiated coefficients
∗p < 0.1; ∗ ∗ p < 0.05; ∗ ∗ ∗p < 0.01
Source(s): CSMAR 2003–2014
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