Regression results
| (1) | (2) | (3) | (4) | (5) | (6) | (7) | (8) | |
|---|---|---|---|---|---|---|---|---|
| OL | OL | OL | OL | OL | OL | ML | GEE | |
| Main effects | ||||||||
| SOE | 0.274*** (2.77) | 0.393*** (3.88) | 0.422*** (4.08) | 0.422*** (3.88) | 0.395*** (3.70) | 0.500*** (4.68) | 0.502*** (3.89) | 0.386*** (3.76) |
| Ownership concentration | −0.020*** (−6.32) | −0.017*** (−5.28) | −0.017*** (−4.25) | −0.019*** (−5.36) | −0.017*** (−4.98) | −0.022*** (−5.35) | −0.018*** (−5.33) | |
| Leverage | 0.036*** (12.19) | 0.038*** (13.08) | 0.039*** (13.22) | 0.040*** (12.63) | 0.033*** (9.31) | 0.038*** (12.27) | 0.049*** (11.42) | 0.040*** (13.28) |
| Controls | ||||||||
| Current liability ratio | −0.000 (−0.03) | 0.000 (0.07) | 0.000 (0.02) | −0.001 (−0.27) | 0.002 (0.67) | 0.001 (0.20) | 0.000 (0.10) | |
| Year since acquisitions | ||||||||
| 2 | −0.040 (−0.39) | −0.030 (−0.29) | −0.062 (−0.56) | 0.028 (0.25) | −0.016 (−0.16) | 0.089 (0.80) | 0.023 (0.25) | |
| 3 | 0.010 (0.07) | 0.026 (0.19) | 0.027 (0.18) | 0.058 (0.39) | 0.036 (0.26) | 0.238 (1.52) | 0.126 (1.00) | |
| 4 | 0.095 (0.53) | 0.117 (0.65) | −0.023 (−0.12) | 0.194 (1.04) | 0.405** (2.04) | 0.249 (1.57) | ||
| 5 | −0.236 (−0.93) | −0.211 (−0.83) | −0.271 (−1.01) | −0.225 (−0.83) | 0.093 (0.33) | −0.028 (−0.13) | ||
| Event types: mergers | 0.329 (1.05) | 0.317 (1.02) | 0.193 (0.55) | 0.185 (0.50) | 0.263 (0.75) | 0.395 (1.06) | 0.341 (1.12) | |
| Mergers and acquisitions | 0.647* (1.65) | 0.599 (1.50) | 0.690 (1.55) | 0.529 (1.12) | 0.596 (1.45) | 1.026** (2.38) | 0.727** (2.00) | |
| Targets: equities | −0.126 (−1.30) | −0.121 (−1.24) | −0.059 (−0.58) | −0.136 (−1.31) | −0.057 (−0.55) | −0.079 (−0.69) | −0.093 (−0.98) | |
| Assets and equities | −0.298** (−1.98) | −0.271* (−1.81) | −0.334** (−1.99) | −0.214 (−1.37) | −0.200 (−1.31) | −0.280 (−1.61) | −0.248* (−1.72) | |
| Cash | 0.205 (1.51) | 0.223 (1.63) | 0.277* (1.90) | 0.332** (2.16) | 0.222 (1.56) | 0.254 (1.59) | 0.211 (1.57) | |
| No. of acquisitions | −0.050 (−1.47) | −0.043 (−1.25) | −0.057 (−1.55) | −0.037 (−1.01) | −0.051 (−1.44) | |||
| Firm size | −0.255*** (−6.24) | −0.258*** (−6.24) | −0.281*** (−6.37) | −0.255*** (−5.67) | −0.253*** (−5.91) | −0.350*** (−6.65) | −0.271*** (−6.66) | |
| Tangible asset ratio | −0.041*** (−6.16) | −0.040*** (−6.08) | −0.040*** (−5.72) | −0.037*** (−4.95) | −0.038*** (−5.62) | −0.045*** (−5.48) | −0.039*** (−5.91) | |
| Firm age | −0.008 (−0.78) | −0.003 (−0.30) | −0.008 (−0.66) | −0.012 (−1.08) | −0.011 (−0.96) | −0.004 (−0.34) | −0.007 (−0.61) | |
| Board independence | 0.012 (1.58) | 0.012 (1.60) | 0.012 (1.40) | 0.011 (1.33) | 0.017** (2.07) | 0.012 (1.37) | 0.011 (1.50) | |
| Number of directors | −0.066** (−2.48) | −0.070** (−2.57) | −0.063** (−2.17) | −0.072** (−2.49) | −0.067** (−2.47) | −0.081** (−2.40) | −0.067** (−2.46) | |
| Industry median ROA | −0.266*** (−8.20) | −0.269*** (−8.28) | −0.268*** (−7.48) | −0.260*** (−7.34) | −0.264*** (−7.43) | −0.333*** (−8.18) | −0.271*** (−8.35) | |
| Incentive schemes | −0.745*** (−3.71) | −0.738*** (−3.69) | −0.776*** (−3.56) | −0.815*** (−3.94) | −0.748*** (−3.36) | −0.818*** (−3.67) | −0.718*** (−3.79) | |
| Year: 2004 | 0.105 (0.34) | 0.074 (0.24) | 0.076 (0.25) | −0.124 (−0.39) | 0.101 (0.33) | 0.093 (0.27) | 0.087 (0.30) | |
| 2005 | 0.482 (1.57) | 0.439 (1.42) | 0.423 (1.34) | 0.255 (0.82) | 0.470 (1.53) | 0.492 (1.40) | 0.435 (1.48) | |
| 2006 | −0.201 (−0.64) | −0.227 (−0.71) | −0.219 (−0.68) | −0.375 (−1.15) | −0.157 (−0.49) | −0.178 (−0.49) | −0.193 (−0.64) | |
| 2007 | −0.372 (−1.14) | −0.381 (−1.16) | −0.430 (−1.26) | −0.497 (−1.49) | −0.263 (−0.79) | −0.321 (−0.86) | −0.345 (−1.12) | |
| 2008 | 0.335 (1.14) | 0.323 (1.09) | 0.291 (0.96) | 0.235 (0.80) | 0.376 (1.27) | 0.358 (1.04) | 0.286 (1.01) | |
| 2009 | 0.026 (0.08) | 0.013 (0.04) | −0.003 (−0.01) | −0.152 (−0.49) | −0.033 (−0.10) | 0.076 (0.21) | 0.005 (0.02) | |
| 2010 | −0.378 (−1.15) | −0.387 (−1.17) | −0.404 (−1.17) | −0.718** (−2.10) | −0.333 (−0.99) | −0.312 (−0.82) | −0.369 (−1.18) | |
| 2011 | −0.038 (−0.12) | −0.058 (−0.18) | −0.186 (−0.56) | −0.187 (−0.59) | −0.039 (−0.12) | 0.050 (0.14) | −0.053 (−0.18) | |
| 2012 | 0.762** (2.52) | 0.723** (2.38) | 0.735** (2.35) | 0.638** (2.12) | 0.737** (2.37) | 0.903** (2.53) | 0.699** (2.42) | |
| 2013 | 0.324 (1.05) | 0.274 (0.89) | 0.271 (0.84) | 0.193 (0.62) | 0.389 (1.23) | 0.445 (1.24) | 0.289 (0.99) | |
| 2014 | 0.170 (0.55) | 0.112 (0.36) | 0.170 (0.53) | −0.018 (−0.06) | 0.275 (0.87) | 0.287 (0.80) | 0.133 (0.46) | |
| Region: middle | −0.037 (−0.32) | −0.029 (−0.25) | −0.037 (−0.31) | −0.064 (−0.52) | −0.023 (−0.20) | −0.038 (−0.27) | −0.026 (−0.22) | |
| West | 0.160 (1.37) | 0.178 (1.52) | 0.153 (1.23) | 0.184 (1.45) | 0.140 (1.12) | 0.206 (1.39) | 0.153 (1.28) | |
| Operating loss five-year before | 1.392*** (10.86) | 1.417*** (11.08) | 1.467*** (10.70) | 1.491*** (10.49) | 0.853*** (5.18) | 1.035*** (8.08) | ||
| Herfindahl Index | −0.019*** (−4.67) | |||||||
| Operating loss three-year before | 1.408*** (10.33) | |||||||
| Constant | −2.978*** (−13.53) | 3.381*** (3.83) | 2.730*** (3.13) | 3.292*** (3.49) | 3.465*** (3.52) | 2.637*** (2.89) | 3.838*** (3.66) | 3.221*** (3.74) |
| lnsig2u | 0.093 (0.38) | |||||||
| 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 | |
| SOE | 0.274*** (2.77) | 0.393*** (3.88) | 0.422*** (4.08) | 0.422*** (3.88) | 0.395*** (3.70) | 0.500*** (4.68) | 0.502*** (3.89) | 0.386*** (3.76) |
| Ownership concentration | −0.020*** (−6.32) | −0.017*** (−5.28) | −0.017*** (−4.25) | −0.019*** (−5.36) | −0.017*** (−4.98) | −0.022*** (−5.35) | −0.018*** (−5.33) | |
| Leverage | 0.036*** (12.19) | 0.038*** (13.08) | 0.039*** (13.22) | 0.040*** (12.63) | 0.033*** (9.31) | 0.038*** (12.27) | 0.049*** (11.42) | 0.040*** (13.28) |
| Current liability ratio | −0.000 (−0.03) | 0.000 (0.07) | 0.000 (0.02) | −0.001 (−0.27) | 0.002 (0.67) | 0.001 (0.20) | 0.000 (0.10) | |
| Year since acquisitions | ||||||||
| 2 | −0.040 (−0.39) | −0.030 (−0.29) | −0.062 (−0.56) | 0.028 (0.25) | −0.016 (−0.16) | 0.089 (0.80) | 0.023 (0.25) | |
| 3 | 0.010 (0.07) | 0.026 (0.19) | 0.027 (0.18) | 0.058 (0.39) | 0.036 (0.26) | 0.238 (1.52) | 0.126 (1.00) | |
| 4 | 0.095 (0.53) | 0.117 (0.65) | −0.023 (−0.12) | 0.194 (1.04) | 0.405** (2.04) | 0.249 (1.57) | ||
| 5 | −0.236 (−0.93) | −0.211 (−0.83) | −0.271 (−1.01) | −0.225 (−0.83) | 0.093 (0.33) | −0.028 (−0.13) | ||
| Event types: mergers | 0.329 (1.05) | 0.317 (1.02) | 0.193 (0.55) | 0.185 (0.50) | 0.263 (0.75) | 0.395 (1.06) | 0.341 (1.12) | |
| Mergers and acquisitions | 0.647* (1.65) | 0.599 (1.50) | 0.690 (1.55) | 0.529 (1.12) | 0.596 (1.45) | 1.026** (2.38) | 0.727** (2.00) | |
| Targets: equities | −0.126 (−1.30) | −0.121 (−1.24) | −0.059 (−0.58) | −0.136 (−1.31) | −0.057 (−0.55) | −0.079 (−0.69) | −0.093 (−0.98) | |
| Assets and equities | −0.298** (−1.98) | −0.271* (−1.81) | −0.334** (−1.99) | −0.214 (−1.37) | −0.200 (−1.31) | −0.280 (−1.61) | −0.248* (−1.72) | |
| Cash | 0.205 (1.51) | 0.223 (1.63) | 0.277* (1.90) | 0.332** (2.16) | 0.222 (1.56) | 0.254 (1.59) | 0.211 (1.57) | |
| No. of acquisitions | −0.050 (−1.47) | −0.043 (−1.25) | −0.057 (−1.55) | −0.037 (−1.01) | −0.051 (−1.44) | |||
| Firm size | −0.255*** (−6.24) | −0.258*** (−6.24) | −0.281*** (−6.37) | −0.255*** (−5.67) | −0.253*** (−5.91) | −0.350*** (−6.65) | −0.271*** (−6.66) | |
| Tangible asset ratio | −0.041*** (−6.16) | −0.040*** (−6.08) | −0.040*** (−5.72) | −0.037*** (−4.95) | −0.038*** (−5.62) | −0.045*** (−5.48) | −0.039*** (−5.91) | |
| Firm age | −0.008 (−0.78) | −0.003 (−0.30) | −0.008 (−0.66) | −0.012 (−1.08) | −0.011 (−0.96) | −0.004 (−0.34) | −0.007 (−0.61) | |
| Board independence | 0.012 (1.58) | 0.012 (1.60) | 0.012 (1.40) | 0.011 (1.33) | 0.017** (2.07) | 0.012 (1.37) | 0.011 (1.50) | |
| Number of directors | −0.066** (−2.48) | −0.070** (−2.57) | −0.063** (−2.17) | −0.072** (−2.49) | −0.067** (−2.47) | −0.081** (−2.40) | −0.067** (−2.46) | |
| Industry median ROA | −0.266*** (−8.20) | −0.269*** (−8.28) | −0.268*** (−7.48) | −0.260*** (−7.34) | −0.264*** (−7.43) | −0.333*** (−8.18) | −0.271*** (−8.35) | |
| Incentive schemes | −0.745*** (−3.71) | −0.738*** (−3.69) | −0.776*** (−3.56) | −0.815*** (−3.94) | −0.748*** (−3.36) | −0.818*** (−3.67) | −0.718*** (−3.79) | |
| Year: 2004 | 0.105 (0.34) | 0.074 (0.24) | 0.076 (0.25) | −0.124 (−0.39) | 0.101 (0.33) | 0.093 (0.27) | 0.087 (0.30) | |
| 2005 | 0.482 (1.57) | 0.439 (1.42) | 0.423 (1.34) | 0.255 (0.82) | 0.470 (1.53) | 0.492 (1.40) | 0.435 (1.48) | |
| 2006 | −0.201 (−0.64) | −0.227 (−0.71) | −0.219 (−0.68) | −0.375 (−1.15) | −0.157 (−0.49) | −0.178 (−0.49) | −0.193 (−0.64) | |
| 2007 | −0.372 (−1.14) | −0.381 (−1.16) | −0.430 (−1.26) | −0.497 (−1.49) | −0.263 (−0.79) | −0.321 (−0.86) | −0.345 (−1.12) | |
| 2008 | 0.335 (1.14) | 0.323 (1.09) | 0.291 (0.96) | 0.235 (0.80) | 0.376 (1.27) | 0.358 (1.04) | 0.286 (1.01) | |
| 2009 | 0.026 (0.08) | 0.013 (0.04) | −0.003 (−0.01) | −0.152 (−0.49) | −0.033 (−0.10) | 0.076 (0.21) | 0.005 (0.02) | |
| 2010 | −0.378 (−1.15) | −0.387 (−1.17) | −0.404 (−1.17) | −0.718** (−2.10) | −0.333 (−0.99) | −0.312 (−0.82) | −0.369 (−1.18) | |
| 2011 | −0.038 (−0.12) | −0.058 (−0.18) | −0.186 (−0.56) | −0.187 (−0.59) | −0.039 (−0.12) | 0.050 (0.14) | −0.053 (−0.18) | |
| 2012 | 0.762** (2.52) | 0.723** (2.38) | 0.735** (2.35) | 0.638** (2.12) | 0.737** (2.37) | 0.903** (2.53) | 0.699** (2.42) | |
| 2013 | 0.324 (1.05) | 0.274 (0.89) | 0.271 (0.84) | 0.193 (0.62) | 0.389 (1.23) | 0.445 (1.24) | 0.289 (0.99) | |
| 2014 | 0.170 (0.55) | 0.112 (0.36) | 0.170 (0.53) | −0.018 (−0.06) | 0.275 (0.87) | 0.287 (0.80) | 0.133 (0.46) | |
| Region: middle | −0.037 (−0.32) | −0.029 (−0.25) | −0.037 (−0.31) | −0.064 (−0.52) | −0.023 (−0.20) | −0.038 (−0.27) | −0.026 (−0.22) | |
| West | 0.160 (1.37) | 0.178 (1.52) | 0.153 (1.23) | 0.184 (1.45) | 0.140 (1.12) | 0.206 (1.39) | 0.153 (1.28) | |
| Operating loss five-year before | 1.392*** (10.86) | 1.417*** (11.08) | 1.467*** (10.70) | 1.491*** (10.49) | 0.853*** (5.18) | 1.035*** (8.08) | ||
| Herfindahl Index | −0.019*** (−4.67) | |||||||
| Operating loss three-year before | 1.408*** (10.33) | |||||||
| Constant | −2.978*** (−13.53) | 3.381*** (3.83) | 2.730*** (3.13) | 3.292*** (3.49) | 3.465*** (3.52) | 2.637*** (2.89) | 3.838*** (3.66) | 3.221*** (3.74) |
| lnsig2u | 0.093 (0.38) | |||||||
| Observations | 7376 | 7364 | 7364 | 6631 | 6629 | 6498 | 7364 | 7364 |
| No. of groups | 1453 | 1453 | ||||||
| Pseudo | 0.0792 | 0.193 | 0.191 | 0.197 | 0.168 | 0.193 | ||
| 1.048 | ||||||||
| 0.250 | ||||||||
Note(s): *p < 0.1; **p < 0.05; ***p < 0.01
Source(s): CSMAR 2003–2014
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