Robustness on cross-country determinants of target status choices using the difference independent variables
| Variables | (1) | (2) | (3) | (4) | (5) |
|---|---|---|---|---|---|
| ΔGovQuality | 0.018* (0.01) | 0.005 (0.02) | |||
| ΔEcoFreedom | 0.166*** (0.04) | 0.296*** (0.08) | |||
| ΔFinDevelop | −0.134* (0.08) | −0.072 (0.17) | |||
| ΔUAI | −0.003*** (0.00) | −0.005*** (0.00) | |||
| Δ(GDP Growth) | 2.556*** (0.71) | 2.379*** (0.74) | 2.641*** (0.77) | 4.324*** (1.07) | 5.390*** (1.29) |
| ΔLog(GDP per capita) | 0.396*** (0.03) | 0.442*** (0.03) | 0.448*** (0.03) | 0.501*** (0.04) | 0.482*** (0.07) |
| Relatedness | −0.537*** (0.05) | −0.526*** (0.05) | −0.622*** (0.06) | −0.593*** (0.07) | −0.616*** (0.08) |
| Cash | 0.880*** (0.05) | 0.882*** (0.05) | 0.761*** (0.06) | 0.960*** (0.06) | 0.707*** (0.08) |
| Toehold | 1.258*** (0.05) | 1.292*** (0.05) | 1.257*** (0.06) | 1.268*** (0.07) | 1.241*** (0.08) |
| Size | 0.945*** (0.11) | 0.934*** (0.11) | 0.967*** (0.11) | 0.952*** (0.09) | 0.941*** (0.09) |
| RelSize | 0.095*** (0.02) | 0.094*** (0.02) | 0.094*** (0.02) | 0.095*** (0.02) | 0.095*** (0.02) |
| Public bidder | −0.405*** (0.05) | −0.394*** (0.05) | −0.432*** (0.05) | −0.465*** (0.06) | −0.398*** (0.08) |
| Emerging bidder | 1.186*** (0.08) | 1.324*** (0.09) | 1.262*** (0.08) | 1.085*** (0.11) | 1.538*** (0.18) |
| Year, Industry and Geography effects | YIG | YIG | YIG | YIG | YIG |
| Intercept | −2.641*** (0.26) | −2.834*** (0.27) | −2.970*** (0.29) | −2.676*** (0.36) | −3.594*** (0.48) |
| N | 14,855 | 13,533 | 11,424 | 7,526 | 5591 |
| Wald χ2 | 2648.16*** | 2355.28*** | 1721.54*** | 967.11*** | 665.24*** |
| Pseudo R2 | 0.3325 | 0.3308 | 0.2743 | 0.1634 | 0.1622 |
| Variables | (1) | (2) | (3) | (4) | (5) |
|---|---|---|---|---|---|
| 0.018* (0.01) | 0.005 (0.02) | ||||
| 0.166*** (0.04) | 0.296*** (0.08) | ||||
| −0.134* (0.08) | −0.072 (0.17) | ||||
| −0.003*** (0.00) | −0.005*** (0.00) | ||||
| 2.556*** (0.71) | 2.379*** (0.74) | 2.641*** (0.77) | 4.324*** (1.07) | 5.390*** (1.29) | |
| 0.396*** (0.03) | 0.442*** (0.03) | 0.448*** (0.03) | 0.501*** (0.04) | 0.482*** (0.07) | |
| −0.537*** (0.05) | −0.526*** (0.05) | −0.622*** (0.06) | −0.593*** (0.07) | −0.616*** (0.08) | |
| 0.880*** (0.05) | 0.882*** (0.05) | 0.761*** (0.06) | 0.960*** (0.06) | 0.707*** (0.08) | |
| 1.258*** (0.05) | 1.292*** (0.05) | 1.257*** (0.06) | 1.268*** (0.07) | 1.241*** (0.08) | |
| 0.945*** (0.11) | 0.934*** (0.11) | 0.967*** (0.11) | 0.952*** (0.09) | 0.941*** (0.09) | |
| 0.095*** (0.02) | 0.094*** (0.02) | 0.094*** (0.02) | 0.095*** (0.02) | 0.095*** (0.02) | |
| −0.405*** (0.05) | −0.394*** (0.05) | −0.432*** (0.05) | −0.465*** (0.06) | −0.398*** (0.08) | |
| 1.186*** (0.08) | 1.324*** (0.09) | 1.262*** (0.08) | 1.085*** (0.11) | 1.538*** (0.18) | |
| YIG | YIG | YIG | YIG | YIG | |
| −2.641*** (0.26) | −2.834*** (0.27) | −2.970*** (0.29) | −2.676*** (0.36) | −3.594*** (0.48) | |
| 14,855 | 13,533 | 11,424 | 7,526 | 5591 | |
| Wald | 2648.16*** | 2355.28*** | 1721.54*** | 967.11*** | 665.24*** |
| Pseudo | 0.3325 | 0.3308 | 0.2743 | 0.1634 | 0.1622 |
Note(s): This table reports the results from five logit models on the two sub-samples, public and private target firms samples. The dependent variable is a binomial outcome with the public target firms sample as 1 and the private sample as 0. Main test variables are the difference in country-level characteristics between the bidder and target countries, including ΔGovQuality, ΔEcoFreedom, ΔFinDevelop and ΔUAI. Δ(GDP Growth) and Δlog(GDP per capita) are proxies for the difference in macroeconomic conditions between the countries. Robust standard errors are shown in parentheses. Symbols ***, ** and * indicate significance at the 1%, 5% and 10% levels, respectively
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