Note(s): The dependent variable is MV for all the regressions. MV is market value per share, six months after reporting date, calculated using a firm-specific total return index. For the preliminary result, BV and NI reflect the reported (unadjusted) variables. In the main analysis, BV is book value per share, excluding all gains on bargain purchase variables; NI is earnings attributable to ordinary shareholders per share, excluding GBP_Disc and GBP_NoDisc; GBP_Disc (GBP_NoDisc) is the gain on bargain purchase per share recognised during the current period where the firm discloses (does not disclose) a supporting reason for its recognition; Neg is an indicator variable set to one if NI is negative and zero otherwise. p-values from two-tailed tests are indicated in brackets. *, ** and *** denote significance at the 10, 5 and 1% levels respectively. Significance is determined based on robust standard errors clustered in three dimensions, namely firm, year and industry (Cameron et al., 2011). An adjustment is made where the variance–covariance matrix is not positive-semidefinite

Source(s): Author's own work