Table 2 Variables and measures Variables... | Emerald Publishing

Table 2

Variables and measures

Variables	Measures
Cross-border acquisition in emerging markets	Dichotomous variable 1 = the acquisition is executed in an emerging market 0 = the acquisition is executed in an advanced economy
Context experience	Number of acquisitions executed in emerging markets at t-1 (since 2000)
Regulatory efficiency distance	Difference in the three regulatory dimensions of business freedom, labour freedom and monetary freedom between Italy and the target countries
Country governance distance	Difference between the Italian political stability score and the target country political stability score
Financial development distance	Difference in the scores of the WEF synthetic measures of “efficiency” and “trustworthiness” of financial markets between Italy and target countries
Cultural distance	Kogut and Singh (1988) formula applied to the nine dimensions of culture of the Globe project
Acquirer listing	Dichotomous variable 1 = the acquiring company is listed 0 = otherwise
Acquirer size	Logarithm of the acquiring firm’s total assets at t-1
Acquirer liquidity	Difference between current assets and inventory divided by current liabilities at t-1
Acquirer pre-deal performance	Acquiring firm’s return on assets at t-1
Geographic experience	Number of cross-border acquisitions executed in the same target area of the focal acquisition at t-1, based on 11 geographic areas (EU 15, other EU countries, other European countries, Russia, Central and South America, North America, China, other Asian countries, Middle East, Africa, others)
Target market size	WEF measure the size of the domestic market (natural log of the sum of the PPP–adjusted GDP + imports – exports) and the size of the foreign market (natural log of exports)
Geographic distance	Distance in kilometers between the capitals of Italy and the target countries
Business relatedness	Dichotomous variable 1 = match between the 4-digit NAICS codes of acquirer and target 0 = no match
Time effects	One dummy variable for each year of observation (11 variables with 2008 as the baseline year)
Industry effects	One dummy variable for each industry of observation (manufacturing, trade, services, utilities, others, with manufacturing as the baseline category)

Variables	Measures
Cross-border acquisition in emerging markets	Dichotomous variable1 = the acquisition is executed in an emerging market0 = the acquisition is executed in an advanced economy
Context experience	Number of acquisitions executed in emerging markets at t-1 (since 2000)
Regulatory efficiency distance	Difference in the three regulatory dimensions of business freedom, labour freedom and monetary freedom between Italy and the target countries
Country governance distance	Difference between the Italian political stability score and the target country political stability score
Financial development distance	Difference in the scores of the WEF synthetic measures of “efficiency” and “trustworthiness” of financial markets between Italy and target countries
Cultural distance	Kogut and Singh (1988) formula applied to the nine dimensions of culture of the Globe project
Acquirer listing	Dichotomous variable1 = the acquiring company is listed0 = otherwise
Acquirer size	Logarithm of the acquiring firm’s total assets at t-1
Acquirer liquidity	Difference between current assets and inventory divided by current liabilities at t-1
Acquirer pre-deal performance	Acquiring firm’s return on assets at t-1
Geographic experience	Number of cross-border acquisitions executed in the same target area of the focal acquisition at t-1, based on 11 geographic areas (EU 15, other EU countries, other European countries, Russia, Central and South America, North America, China, other Asian countries, Middle East, Africa, others)
Target market size	WEF measure the size of the domestic market (natural log of the sum of the PPP–adjusted GDP + imports – exports) and the size of the foreign market (natural log of exports)
Geographic distance	Distance in kilometers between the capitals of Italy and the target countries
Business relatedness	Dichotomous variable1 = match between the 4-digit NAICS codes of acquirer and target0 = no match
Time effects	One dummy variable for each year of observation (11 variables with 2008 as the baseline year)
Industry effects	One dummy variable for each industry of observation (manufacturing, trade, services, utilities, others, with manufacturing as the baseline category)