Table 6 Main multivariate regression...

Table 6

Main multivariate regression results

Panel A: regression results
Variable	Model (2) without acquisition track record interactions	Model (2)	Additional control variables	High information asymmetry subsample	Actively traded subsample
Main variables
BV	1.221***	1.422***	1.411***	1.661***	1.459***
BV	(0.001)	(<0.001)	(<0.001)	(0.003)	(<0.001)
NI	−1.567	−1.048	−1.113	0.384	−1.079
NI	(0.152)	(0.275)	(0.201)	(0.716)	(0.172)
Impair	−1.252	−2.992	−3.389**	0.267	−5.578
Impair	(0.196)	(0.170)	(0.011)	(0.934)	(0.117)
GBP_Disc	26.557***	−20.881***	−22.662***	19.765	−22.319***
GBP_Disc	(0.001)	(0.001)	(0.009)	(0.606)	(<0.001)
GBP_NoDisc	9.998*	3.401	2.328	1.353	2.763
GBP_NoDisc	(0.078)	(0.646)	(0.748)	(0.830)	(0.719)
GBPold_Disc	3.128	−20.876***	−22.404***	20.981	−21.538**
GBPold_Disc	(0.746)	(0.008)	(0.002)	(0.588)	(0.014)
GBPold_NoDisc	3.364	−18.059*	−18.616*	−38.846***	−21.102**
GBPold_NoDisc	(0.236)	(0.064)	(0.056)	(0.010)	(0.042)
Impair*GBP_Disc		68.652***	70.527***	151.626***	72.993***
Impair*GBP_Disc		(<0.001)	(<0.001)	(<0.001)	(<0.001)
Impair*GBP_NoDisc		3.414	2.306	21.327***	7.532
Impair*GBP_NoDisc		(0.844)	(0.884)	(<0.001)	(0.661)
Impair*GBPold_Disc		32.957***	34.950***	106.538***	35.225***
Impair*GBPold_Disc		(0.002)	(0.008)	(<0.001)	(0.001)
Impair*GBPold_NoDisc		24.272**	24.495**	45.522**	28.496**
Impair*GBPold_NoDisc		(0.031)	(0.026)	(0.014)	(0.026)
Control variables
Impair*BV	−0.573*	−0.634**	−0.639**	−0.753***	−0.623***
Impair*BV	(0.085)	(0.020)	(0.019)	(0.004)	(0.008)
Impair*NI	1.983*	1.271	1.251	−0.367	1.290**
Impair*NI	(0.056)	(0.128)	(0.124)	(0.970)	(0.041)
Neg	10.192***	9.016***	11.558***	12.993***	11.334***
Neg	(<0.001)	(<0.001)	(0.004)	(0.001)	(0.002)
Neg*BV	−0.918***	−0.960***	−1.029***	−0.776***	−1.024***
Neg*BV	(0.001)	(<0.001)	(<0.001)	(0.001)	(<0.001)
Neg*NI	1.726***	1.410**	1.371**	1.119	1.354**
Neg*NI	(<0.001)	(0.010)	(0.012)	(0.232)	(0.014)
Neg*GBP_Disc	−30.275***	2.820	−1.057	−64.748***	1.691
Neg*GBP_Disc	(<0.001)	(0.703)	(0.906)	(0.006)	(0.888)
Neg*GBP_NoDisc	58.588***	53.277**	47.817**	126.588***	72.675***
Neg*GBP_NoDisc	(<0.001)	(0.010)	(0.015)	(0.007)	(<0.001)
Neg*GBPold_Disc	2.261	3.645	−0.585	−45.949***	−0.258
Neg*GBPold_Disc	(0.761)	(0.681)	(0.943)	(0.010)	(0.986)
Neg*GBPold_NoDisc	16.289	17.407	17.519	17.585*	17.283
Neg*GBPold_NoDisc	(0.183)	(0.210)	(0.217)	(0.052)	(0.260)
Size			2.452*
Size			(0.095)
ROA			0.379
ROA			(0.950)
LEV			15.845***
LEV			(0.002)
Fixed effects
Firm	Yes	Yes	Yes	Yes	Yes
Year	Yes	Yes	Yes	Yes	Yes
Industry	Yes	Yes	Yes	Yes	Yes
N	429	429	429	265	351
Within R²	29.7%	35.0%	35.4%	47.9%	35.3%

Panel A: regression results
Variable	Model (2) without acquisition track record interactions	Model (2)	Additional control variables	High information asymmetry subsample	Actively traded subsample
Main variables
BV	1.221***	1.422***	1.411***	1.661***	1.459***
BV	(0.001)	(<0.001)	(<0.001)	(0.003)	(<0.001)
NI	−1.567	−1.048	−1.113	0.384	−1.079
NI	(0.152)	(0.275)	(0.201)	(0.716)	(0.172)
Impair	−1.252	−2.992	−3.389**	0.267	−5.578
Impair	(0.196)	(0.170)	(0.011)	(0.934)	(0.117)
GBP_Disc	26.557***	−20.881***	−22.662***	19.765	−22.319***
GBP_Disc	(0.001)	(0.001)	(0.009)	(0.606)	(<0.001)
GBP_NoDisc	9.998*	3.401	2.328	1.353	2.763
GBP_NoDisc	(0.078)	(0.646)	(0.748)	(0.830)	(0.719)
GBPold_Disc	3.128	−20.876***	−22.404***	20.981	−21.538**
GBPold_Disc	(0.746)	(0.008)	(0.002)	(0.588)	(0.014)
GBPold_NoDisc	3.364	−18.059*	−18.616*	−38.846***	−21.102**
GBPold_NoDisc	(0.236)	(0.064)	(0.056)	(0.010)	(0.042)
Impair*GBP_Disc		68.652***	70.527***	151.626***	72.993***
Impair*GBP_Disc		(<0.001)	(<0.001)	(<0.001)	(<0.001)
Impair*GBP_NoDisc		3.414	2.306	21.327***	7.532
Impair*GBP_NoDisc		(0.844)	(0.884)	(<0.001)	(0.661)
Impair*GBPold_Disc		32.957***	34.950***	106.538***	35.225***
Impair*GBPold_Disc		(0.002)	(0.008)	(<0.001)	(0.001)
Impair*GBPold_NoDisc		24.272**	24.495**	45.522**	28.496**
Impair*GBPold_NoDisc		(0.031)	(0.026)	(0.014)	(0.026)
Control variables
Impair*BV	−0.573*	−0.634**	−0.639**	−0.753***	−0.623***
Impair*BV	(0.085)	(0.020)	(0.019)	(0.004)	(0.008)
Impair*NI	1.983*	1.271	1.251	−0.367	1.290**
Impair*NI	(0.056)	(0.128)	(0.124)	(0.970)	(0.041)
Neg	10.192***	9.016***	11.558***	12.993***	11.334***
Neg	(<0.001)	(<0.001)	(0.004)	(0.001)	(0.002)
Neg*BV	−0.918***	−0.960***	−1.029***	−0.776***	−1.024***
Neg*BV	(0.001)	(<0.001)	(<0.001)	(0.001)	(<0.001)
Neg*NI	1.726***	1.410**	1.371**	1.119	1.354**
Neg*NI	(<0.001)	(0.010)	(0.012)	(0.232)	(0.014)
Neg*GBP_Disc	−30.275***	2.820	−1.057	−64.748***	1.691
Neg*GBP_Disc	(<0.001)	(0.703)	(0.906)	(0.006)	(0.888)
Neg*GBP_NoDisc	58.588***	53.277**	47.817**	126.588***	72.675***
Neg*GBP_NoDisc	(<0.001)	(0.010)	(0.015)	(0.007)	(<0.001)
Neg*GBPold_Disc	2.261	3.645	−0.585	−45.949***	−0.258
Neg*GBPold_Disc	(0.761)	(0.681)	(0.943)	(0.010)	(0.986)
Neg*GBPold_NoDisc	16.289	17.407	17.519	17.585*	17.283
Neg*GBPold_NoDisc	(0.183)	(0.210)	(0.217)	(0.052)	(0.260)
Size			2.452*
Size			(0.095)
ROA			0.379
ROA			(0.950)
LEV			15.845***
LEV			(0.002)
Fixed effects
Firm	Yes	Yes	Yes	Yes	Yes
Year	Yes	Yes	Yes	Yes	Yes
Industry	Yes	Yes	Yes	Yes	Yes
N	429	429	429	265	351
Within R²	29.7%	35.0%	35.4%	47.9%	35.3%

Panel B: sum of coefficient tests
Sum of coefficients tested	Model (2)	Additional control variables	High information asymmetry subsample	Actively traded subsample
GBP_Disc + Impair*GBP_Disc = 0	5.662*** (<0.001)	2.959*** (0.003)	3.279*** (0.001)	5.000*** (<0.001)
GBP_Nodisc + Impair*GBP_ Nodisc = 0	0.329 (0.743)	0.241 (0.810)	2.948*** (<0.001)	0.565 (0.573)
GBPold_Disc + Impair*GBPold_Disc = 0	0.991 (0.322)	0.907 (0.365)	2.650*** (0.009)	1.130 (0.259)
GBPold_Nodisc + Impair*GBPold_Nodisc = 0	0.449 (0.654)	0.341 (0.734)	0.258 (0.796)	0.385 (0.701)

Panel B: sum of coefficient tests
Sum of coefficients tested	Model (2)	Additional control variables	High information asymmetry subsample	Actively traded subsample
GBP_Disc + Impair*GBP_Disc = 0	5.662*** (<0.001)	2.959*** (0.003)	3.279*** (0.001)	5.000*** (<0.001)
GBP_Nodisc + Impair*GBP_ Nodisc = 0	0.329 (0.743)	0.241 (0.810)	2.948*** (<0.001)	0.565 (0.573)
GBPold_Disc + Impair*GBPold_Disc = 0	0.991 (0.322)	0.907 (0.365)	2.650*** (0.009)	1.130 (0.259)
GBPold_Nodisc + Impair*GBPold_Nodisc = 0	0.449 (0.654)	0.341 (0.734)	0.258 (0.796)	0.385 (0.701)

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; 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; Impair is an indicator variable set to one if a firm has reported impairment of goodwill during the current or two preceding years and zero otherwise; 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; GBPold_Disc (GBPold_NoDisc) is the total gains on bargain purchase per share recognised in earnings over the preceding two periods where the firm disclosed (did not disclose) supporting reasons in the period of their first recognition; Neg is an indicator variable set to one if NI is negative and zero otherwise; Size is the natural log of total assets; ROA is return on assets; LEV is gearing, calculated as unadjusted book value over total assets. 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

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