Table 3 Country-level characteristics...

Table 3

Country-level characteristics and target status preferences

Country-level characteristics	(1)				(2)				Difference test (t-ratio)
	Public target				Private target				Difference test (t-ratio)
	N	Mean	Med	SD	N	Mean	Med	SD	(1)–(2)
Target GovQuality	12,941	−1.264	−1.714	2.414	3865	−1.049	−1.645	3.001	−4.58***
Target EcoFreedom	12,049	6.616	6.590	0.504	3628	6.580	6.540	0.509	3.83***
Target FinDevelop	12,504	0.013	0.036	0.162	3830	−0.034	−0.023	0.219	14.38***
Target GDP Growth	12,935	0.062	0.060	0.033	3865	0.049	0.050	0.035	19.75***
Target GDP per capita	12,935	30,146	32,624	21,109	3865	31,216	33,251	19,514	−11.46***
Bidder GovQuality	11,304	6.856	7.847	3.450	3643	6.898	7.541	3.196	−0.64
Bidder EcoFreedom	11,303	1.408	1.573	0.788	3643	1.371	1.404	0.746	7.08***
Bidder FinDevelop	10,590	7.924	7.930	0.687	3373	7.830	7.760	0.624	10.36***
Bidder GDP Growth	9,713	1.347	1.152	0.936	3127	1.125	0.962	0.905	9.66***
Bidder GDP per capita	9,713	40,115	41,248	17,663	3127	41,853	42,007	18,015	−10.12***
ΔGovQuality	11,266	0.033	0.028	0.032	3605	0.027	0.027	0.035	3.62***
ΔEcoFreedom	11,266	0.021	0.019	0.031	3605	0.015	0.017	0.034	4.29***
ΔFinDevelop	11,304	8.191	9.112	4.140	3643	7.904	9.078	4.249	4.60***
CulDistance	10,325	1.337	1.330	0.907	3322	1.260	1.260	0.837	16.77***
ΔUAI	8,969	0.001	−0.101	0.376	2455	−0.040	−0.099	0.415	−5.49***

Country-level characteristics	(1)				(2)				Difference test (t-ratio)
	Public target				Private target				Difference test (t-ratio)
	N	Mean	Med	SD	N	Mean	Med	SD	(1)–(2)
Target GovQuality	12,941	−1.264	−1.714	2.414	3865	−1.049	−1.645	3.001	−4.58***
Target EcoFreedom	12,049	6.616	6.590	0.504	3628	6.580	6.540	0.509	3.83***
Target FinDevelop	12,504	0.013	0.036	0.162	3830	−0.034	−0.023	0.219	14.38***
Target GDP Growth	12,935	0.062	0.060	0.033	3865	0.049	0.050	0.035	19.75***
Target GDP per capita	12,935	30,146	32,624	21,109	3865	31,216	33,251	19,514	−11.46***
Bidder GovQuality	11,304	6.856	7.847	3.450	3643	6.898	7.541	3.196	−0.64
Bidder EcoFreedom	11,303	1.408	1.573	0.788	3643	1.371	1.404	0.746	7.08***
Bidder FinDevelop	10,590	7.924	7.930	0.687	3373	7.830	7.760	0.624	10.36***
Bidder GDP Growth	9,713	1.347	1.152	0.936	3127	1.125	0.962	0.905	9.66***
Bidder GDP per capita	9,713	40,115	41,248	17,663	3127	41,853	42,007	18,015	−10.12***
ΔGovQuality	11,266	0.033	0.028	0.032	3605	0.027	0.027	0.035	3.62***
ΔEcoFreedom	11,266	0.021	0.019	0.031	3605	0.015	0.017	0.034	4.29***
ΔFinDevelop	11,304	8.191	9.112	4.140	3643	7.904	9.078	4.249	4.60***
CulDistance	10,325	1.337	1.330	0.907	3322	1.260	1.260	0.837	16.77***
ΔUAI	8,969	0.001	−0.101	0.376	2455	−0.040	−0.099	0.415	−5.49***

Note(s): All continuous variables are winsorized at the 1% level using the fiscal year ended before the acquisition. We divide our sample into two separated groups (public and private firms). All country-level variables are taken from the Worldwide Governance Indicators (World Bank database), Economic Freedom of the World, World Trade Organization, Global Financial Development database and Hofstede's website. Difference-based variables (Δ) indicate the difference between the bidder and target countries. Difference in means is calculated using a t-test. Symbols ***, ** and * indicate significance at the 1%, 5% and 10% levels, respectively

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