Table AII Correlation matrix CAR[−1, 1]...

Table AII

Correlation matrix

	CAR[−1, +1]	CAR[−1, +3]	CAR[−3, +3]	CAR[−5, +5]	Shareholder protection difference	Dispersion (shareholder protection)	Creditor protection	Dispersion (creditor protection)
CAR[−1, +1]	1
CAR[−1, +3]	0.809*	1
CAR[−3, +3]	0.659*	0.851*	1
CAR[−5, +5]	0.517*	0.674*	0.845*	1
Shareholder protection difference	0.069	0.059	0.015	0.023	1
Dispersion (shareholder protection)	−0.010	0.040	0.010	−0.025	0.577*	1
Creditor protection	0.064	0.017	−0.018	0.001	0.626*	0.505*	1
Dispersion (creditor protection)	0.033	0.042	0.018	0.014	0.552*	0.618*	0.618*	1
Transparency	−0.010	0.013	0.028	0.009	−0.038	−0.117*	−0.103*	−0.028
Political stability	0.030	0.005	0.004	0.024	−0.46*	−0.408*	−0.228*	−0.404*
Economic freedom	0.010	0.021	0.032	0.027	−0.497*	−0.429*	−0.247*	−0.478*
Corruption	0.011	0.012	0.034	0.019	−0.526*	−0.534*	−0.254*	−0.651*
Common law	0.075	0.038	0.028	0.038	−0.232*	−0.695*	−0.009	−0.532*
Cultural difference	−0.015	−0.001	−0.024	−0.027	0.463*	0.498*	0.266*	0.453*
Same language	0.043	0.001	−0.005	0.023	−0.161*	−0.408*	−0.012	−0.419*
Market value/GDP	−0.030	−0.015	0.003	0.007	−0.440*	−0.414*	−0.059	−0.414*
GDP/capita	−0.057	−0.027	0.034	0.059	−0.489*	−0.524*	−0.150*	−0.424*
GDP growth	−0.025	0.003	0.039	0.003	0.230*	0.213*	0.098*	0.272*
Urbanization	0.121*	0.084	0.014	0.018	0.423*	0.168*	0.219*	0.244*
Transaction value	−0.134*	−0.068	−0.039	−0.038	0.016	−0.020	−0.072	−0.023
Acquirer size	−0.282*	−0.216*	−0.184*	−0.155*	0.032	0.101*	−0.130*	0.013
Tobin’s Q	−0.028	−0.068	−0.052	−0.021	−0.130*	−0.190*	−0.008	−0.112*
ROA	0.020	−0.027	0.007	0.069	−0.106*	−0.024	−0.068	−0.056
Free CF	−0.102*	−0.079	−0.002	0.034	−0.010	−0.046	−0.086	−0.006
Cash payment	−0.030	−0.014	−0.038	−0.083	0.032	−0.041	0.000	−0.068
Target listed	−0.067	−0.016	−0.035	−0.037	0.036	−0.011	−0.030	−0.077
Minority acquisition	−0.033	−0.054	−0.071	−0.034	−0.001	−0.030	−0.027	−0.007
Majority acquisition	0.033	0.054	0.071	0.034	0.001	0.030	0.027	0.007
100% acquisition	0.072	0.074	0.077	0.122*	−0.008	−0.079	0.074	−0.025
Prior presence	−0.102*	−0.059	−0.091	−0.103*	0.141*	0.093	0.066	0.017
Diversification	−0.034	−0.020	−0.027	−0.034	−0.129*	−0.162*	−0.082	−0.047
	Transparency	Political stability	Economic freedom	Corruption	Common law	Cultural difference	Same language	Market value/GDP
Transparency	1
Political stability	0.030	1
Economic freedom	0.210*	0.649*	1
Corruption	0.168*	0.674*	0.785*	1
Common Law	0.015	0.158*	0.264*	0.329*	1
Cultural difference	0.055	−0.319*	−0.429*	−0.548*	−0.446*	1
Same language	0.116*	0.356*	0.446*	0.442*	0.461*	−0.598*	1
Market value/GDP	−0.092	0.377*	0.405*	0.564*	0.421*	−0.638*	0.329*	1
GDP/capita	0.319*	0.516*	0.653*	0.712*	0.287*	−0.494*	0.305*	0.673*
GDP growth	−0.046	−0.151*	−0.296*	−0.393*	−0.230*	0.353*	−0.199*	−0.434*
Urbanization	−0.345*	−0.516*	−0.432*	−0.629*	0.138*	0.283*	−0.116*	−0.440*
Transaction value	0.041	−0.054	0.013	0.022	0.020	−0.016	−0.034	0.041
Acquirer size	0.108*	−0.091	0.007	0.015	−0.102*	0.045	−0.080	−0.039
Tobin’s Q	−0.039	0.133*	0.142*	0.137*	0.121*	−0.096	0.103*	0.111*
ROA	−0.049	0.035	0.045	0.075	−0.002	−0.045	0.009	0.123*
Free CF	0.051	−0.034	−0.006	0.027	0.019	−0.014	0.010	0.015
Cash payment	0.026	−0.025	0.032	0.061	0.002	0.085	−0.043	−0.002
Target listed	0.118*	−0.029	0.023	0.058	0.077	−0.028	−0.001	0.100*
Minority acquisition	0.079	−0.043	0.024	0.029	−0.038	0.014	0.014	−0.098*
Majority acquisition	−0.079	0.043	−0.024	−0.029	0.038	−0.014	−0.014	0.098*
100% acquisition	−0.050	0.044	0.064	0.077	0.089	−0.058	0.016	0.187*
Prior presence	0.029	−0.072	−0.011	0.047	−0.029	−0.048	0.042	−0.013
Diversification	0.036	0.033	0.106*	0.081	0.095	−0.064	0.045	0.033
	GDP/capita	GDP growth	Urbanization	Transaction value	Acquirer size	Tobin’s Q	ROA	Free CF
GDP/capita	1
GDP growth	−0.401*	1
Urbanization	−0.654*	0.432*	1
Transaction value	0.075	−0.032	−0.090	1
Acquirer size	0.068	−0.037	−0.143*	0.594*	1
Tobin’s Q	0.132*	0.036	−0.037	−0.085	−0.154*	1
ROA	0.067	−0.111*	−0.132*	0.125*	0.215*	−0.126*	1
Free CF	0.063	0.021	−0.068	0.090	0.162*	−0.021	0.119*	1
Cash payment	−0.003	0.015	−0.071	0.094	0.096	−0.110*	0.054	−0.001
Target listed	0.003	−0.017	−0.100*	0.487*	0.272*	−0.066	0.078	0.071
Minority acquisition	−0.014	0.012	−0.033	0.093	0.260*	−0.089	0.040	0.002
Majority acquisition	0.014	−0.012	0.033	−0.093	−0.260*	0.089	−0.040	−0.002
100% acquisition	0.144*	−0.127*	−0.031	−0.084	−0.249*	0.149*	0.001	0.075
Prior presence	0.033	−0.081	−0.045	0.252*	0.370*	−0.136*	0.061	−0.004
Diversification	0.113*	−0.070	−0.037	−0.128*	−0.043	−0.045	0.009	0.011
	Cash payment	Target listed	Minority acquisition	Majority acquisition	100% acquisition	Prior presence	Diversification
Cash payment	1
Target listed	0.143*	1
Minority acquisition	0.036	0.151*	1
Majority acquisition	−0.036	−0.151*	−1.000	1
100% acquisition	−0.112*	−0.090	−0.479*	0.479*	1
Prior presence	0.107*	0.134*	0.251*	−0.251*	−0.159*	1
Diversification	0.023	−0.096	0.034	−0.034	0.006	−0.134*	1

	CAR[−1, +1]	CAR[−1, +3]	CAR[−3, +3]	CAR[−5, +5]	Shareholder protection difference	Dispersion (shareholder protection)	Creditor protection	Dispersion (creditor protection)
CAR[−1, +1]	1
CAR[−1, +3]	0.809*	1
CAR[−3, +3]	0.659*	0.851*	1
CAR[−5, +5]	0.517*	0.674*	0.845*	1
Shareholder protection difference	0.069	0.059	0.015	0.023	1
Dispersion (shareholder protection)	−0.010	0.040	0.010	−0.025	0.577*	1
Creditor protection	0.064	0.017	−0.018	0.001	0.626*	0.505*	1
Dispersion (creditor protection)	0.033	0.042	0.018	0.014	0.552*	0.618*	0.618*	1
Transparency	−0.010	0.013	0.028	0.009	−0.038	−0.117*	−0.103*	−0.028
Political stability	0.030	0.005	0.004	0.024	−0.46*	−0.408*	−0.228*	−0.404*
Economic freedom	0.010	0.021	0.032	0.027	−0.497*	−0.429*	−0.247*	−0.478*
Corruption	0.011	0.012	0.034	0.019	−0.526*	−0.534*	−0.254*	−0.651*
Common law	0.075	0.038	0.028	0.038	−0.232*	−0.695*	−0.009	−0.532*
Cultural difference	−0.015	−0.001	−0.024	−0.027	0.463*	0.498*	0.266*	0.453*
Same language	0.043	0.001	−0.005	0.023	−0.161*	−0.408*	−0.012	−0.419*
Market value/GDP	−0.030	−0.015	0.003	0.007	−0.440*	−0.414*	−0.059	−0.414*
GDP/capita	−0.057	−0.027	0.034	0.059	−0.489*	−0.524*	−0.150*	−0.424*
GDP growth	−0.025	0.003	0.039	0.003	0.230*	0.213*	0.098*	0.272*
Urbanization	0.121*	0.084	0.014	0.018	0.423*	0.168*	0.219*	0.244*
Transaction value	−0.134*	−0.068	−0.039	−0.038	0.016	−0.020	−0.072	−0.023
Acquirer size	−0.282*	−0.216*	−0.184*	−0.155*	0.032	0.101*	−0.130*	0.013
Tobin’s Q	−0.028	−0.068	−0.052	−0.021	−0.130*	−0.190*	−0.008	−0.112*
ROA	0.020	−0.027	0.007	0.069	−0.106*	−0.024	−0.068	−0.056
Free CF	−0.102*	−0.079	−0.002	0.034	−0.010	−0.046	−0.086	−0.006
Cash payment	−0.030	−0.014	−0.038	−0.083	0.032	−0.041	0.000	−0.068
Target listed	−0.067	−0.016	−0.035	−0.037	0.036	−0.011	−0.030	−0.077
Minority acquisition	−0.033	−0.054	−0.071	−0.034	−0.001	−0.030	−0.027	−0.007
Majority acquisition	0.033	0.054	0.071	0.034	0.001	0.030	0.027	0.007
100% acquisition	0.072	0.074	0.077	0.122*	−0.008	−0.079	0.074	−0.025
Prior presence	−0.102*	−0.059	−0.091	−0.103*	0.141*	0.093	0.066	0.017
Diversification	−0.034	−0.020	−0.027	−0.034	−0.129*	−0.162*	−0.082	−0.047
	Transparency	Political stability	Economic freedom	Corruption	Common law	Cultural difference	Same language	Market value/GDP
Transparency	1
Political stability	0.030	1
Economic freedom	0.210*	0.649*	1
Corruption	0.168*	0.674*	0.785*	1
Common Law	0.015	0.158*	0.264*	0.329*	1
Cultural difference	0.055	−0.319*	−0.429*	−0.548*	−0.446*	1
Same language	0.116*	0.356*	0.446*	0.442*	0.461*	−0.598*	1
Market value/GDP	−0.092	0.377*	0.405*	0.564*	0.421*	−0.638*	0.329*	1
GDP/capita	0.319*	0.516*	0.653*	0.712*	0.287*	−0.494*	0.305*	0.673*
GDP growth	−0.046	−0.151*	−0.296*	−0.393*	−0.230*	0.353*	−0.199*	−0.434*
Urbanization	−0.345*	−0.516*	−0.432*	−0.629*	0.138*	0.283*	−0.116*	−0.440*
Transaction value	0.041	−0.054	0.013	0.022	0.020	−0.016	−0.034	0.041
Acquirer size	0.108*	−0.091	0.007	0.015	−0.102*	0.045	−0.080	−0.039
Tobin’s Q	−0.039	0.133*	0.142*	0.137*	0.121*	−0.096	0.103*	0.111*
ROA	−0.049	0.035	0.045	0.075	−0.002	−0.045	0.009	0.123*
Free CF	0.051	−0.034	−0.006	0.027	0.019	−0.014	0.010	0.015
Cash payment	0.026	−0.025	0.032	0.061	0.002	0.085	−0.043	−0.002
Target listed	0.118*	−0.029	0.023	0.058	0.077	−0.028	−0.001	0.100*
Minority acquisition	0.079	−0.043	0.024	0.029	−0.038	0.014	0.014	−0.098*
Majority acquisition	−0.079	0.043	−0.024	−0.029	0.038	−0.014	−0.014	0.098*
100% acquisition	−0.050	0.044	0.064	0.077	0.089	−0.058	0.016	0.187*
Prior presence	0.029	−0.072	−0.011	0.047	−0.029	−0.048	0.042	−0.013
Diversification	0.036	0.033	0.106*	0.081	0.095	−0.064	0.045	0.033
	GDP/capita	GDP growth	Urbanization	Transaction value	Acquirer size	Tobin’s Q	ROA	Free CF
GDP/capita	1
GDP growth	−0.401*	1
Urbanization	−0.654*	0.432*	1
Transaction value	0.075	−0.032	−0.090	1
Acquirer size	0.068	−0.037	−0.143*	0.594*	1
Tobin’s Q	0.132*	0.036	−0.037	−0.085	−0.154*	1
ROA	0.067	−0.111*	−0.132*	0.125*	0.215*	−0.126*	1
Free CF	0.063	0.021	−0.068	0.090	0.162*	−0.021	0.119*	1
Cash payment	−0.003	0.015	−0.071	0.094	0.096	−0.110*	0.054	−0.001
Target listed	0.003	−0.017	−0.100*	0.487*	0.272*	−0.066	0.078	0.071
Minority acquisition	−0.014	0.012	−0.033	0.093	0.260*	−0.089	0.040	0.002
Majority acquisition	0.014	−0.012	0.033	−0.093	−0.260*	0.089	−0.040	−0.002
100% acquisition	0.144*	−0.127*	−0.031	−0.084	−0.249*	0.149*	0.001	0.075
Prior presence	0.033	−0.081	−0.045	0.252*	0.370*	−0.136*	0.061	−0.004
Diversification	0.113*	−0.070	−0.037	−0.128*	−0.043	−0.045	0.009	0.011
	Cash payment	Target listed	Minority acquisition	Majority acquisition	100% acquisition	Prior presence	Diversification
Cash payment	1
Target listed	0.143*	1
Minority acquisition	0.036	0.151*	1
Majority acquisition	−0.036	−0.151*	−1.000	1
100% acquisition	−0.112*	−0.090	−0.479*	0.479*	1
Prior presence	0.107*	0.134*	0.251*	−0.251*	−0.159*	1
Diversification	0.023	−0.096	0.034	−0.034	0.006	−0.134*	1

Note: *Indicates significance at the 5 percent level

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