Table 6 Mechanism test: cross-ownership,...

Table 6

Mechanism test: cross-ownership, corporate governance and innovation

	(1)	(2)
	${A p p l y}_{t + 1}$	${A p p l y_I}_{t + 1}$
Cross	0.200***	0.269***
Cross	(0.0583)	(0.0527)
Cross*Gov	−0.141**	−0.158***
Cross*Gov	(0.0597)	(0.0547)
Gov	−0.0248	−0.0292**
Gov	(0.0158)	(0.0137)
Growth	−0.0662***	−0.0326**
Growth	(0.0174)	(0.0146)
IND	0.169	−0.0126
IND	(0.262)	(0.230)
Lev	−0.0326	−0.0212
Lev	(0.0830)	(0.0712)
Cash	−0.0375	0.00381
Cash	(0.107)	(0.0947)
PPE	−0.944***	−0.802***
PPE	(0.0824)	(0.0711)
ROA	3.208***	2.423***
ROA	(0.212)	(0.175)
Share	0.0579	−0.191**
Share	(0.0860)	(0.0749)
Separation	−0.0541	0.116
Separation	(0.167)	(0.145)
SOE	−0.0408	0.0669**
SOE	(0.0320)	(0.0277)
Size	0.308***	0.322***
Size	(0.0156)	(0.0138)
Tobin_q	−0.0104	0.0348***
Tobin_q	(0.0114)	(0.00977)
Age	−0.284***	−0.205***
Age	(0.0369)	(0.0312)
Year FEs	Yes	Yes
Industry FEs	Yes	Yes
Constant	−5.451***	−6.241***
Constant	(0.511)	(0.443)
Observations	16,477	16,477
$R^{2}$	0.217	0.180

	(1)	(2)
	${A p p l y}_{t + 1}$	${A p p l y_I}_{t + 1}$
Cross	0.200***	0.269***
Cross	(0.0583)	(0.0527)
Cross*Gov	−0.141**	−0.158***
Cross*Gov	(0.0597)	(0.0547)
Gov	−0.0248	−0.0292**
Gov	(0.0158)	(0.0137)
Growth	−0.0662***	−0.0326**
Growth	(0.0174)	(0.0146)
IND	0.169	−0.0126
IND	(0.262)	(0.230)
Lev	−0.0326	−0.0212
Lev	(0.0830)	(0.0712)
Cash	−0.0375	0.00381
Cash	(0.107)	(0.0947)
PPE	−0.944***	−0.802***
PPE	(0.0824)	(0.0711)
ROA	3.208***	2.423***
ROA	(0.212)	(0.175)
Share	0.0579	−0.191**
Share	(0.0860)	(0.0749)
Separation	−0.0541	0.116
Separation	(0.167)	(0.145)
SOE	−0.0408	0.0669**
SOE	(0.0320)	(0.0277)
Size	0.308***	0.322***
Size	(0.0156)	(0.0138)
Tobin_q	−0.0104	0.0348***
Tobin_q	(0.0114)	(0.00977)
Age	−0.284***	−0.205***
Age	(0.0369)	(0.0312)
Year FEs	Yes	Yes
Industry FEs	Yes	Yes
Constant	−5.451***	−6.241***
Constant	(0.511)	(0.443)
Observations	16,477	16,477
$R^{2}$	0.217	0.180

Note(s): The numbers in parentheses are t-statistics based on standard errors that are clustered at the merger level. ***, ** and * represent signiﬁcance at the 1%, 5% and 10% levels, respectively

Source(s): Authors' own work

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