Table 5

Variation inflation factor (VIF)

VariableVIF1/VIF
Logage5.480.182635
Gross_Margin3.830.261339
BTM3.300.303105
Big42.800.356598
ROA2.480.402459
Offer_price2.480.403600
Leverage2.450.408901
Nidummy2.380.420171
Firstday_ret2.360.423355
VC_Dummy2.180.458764
Abs_DA1.890.529769
Poison pill1.460.684285
Rm_PROXY1.330.754113
Overhang1.040.957858
Mean VIF2.53

Note(s): According to Brooks (2019), a VIF index over 5 indicates severe multicollinearity.  Appendix outlines definitions and data sources for the variables

Source(s): Table by authors

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