Table 4 Co-opted board and market...

Table 4

Co-opted board and market reactions to acquisition announcements

	(1)	(2)	(3)
	CAR	CAR	CAR
PCO_OPT	−0.0071***	–	–
PCO_OPT	(−3.44)
NCO_OPT	–	−0.0007***	–
NCO_OPT		(−3.57)
RCO_OPT	–	–	−0.0064***
RCO_OPT			(−3.12)
SIZE	−0.0015***	−0.0014***	−0.0015***
SIZE	(−2.74)	(−2.63)	(−2.77)
LEV	0.0129**	0.0129**	0.0129**
LEV	(2.55)	(2.54)	(2.55)
CASH	−0.0143**	−0.0144**	−0.0143**
CASH	(−2.48)	(−2.50)	(−2.48)
TOBINQ	0.0028***	0.0028***	0.0028***
TOBINQ	(4.71)	(4.70)	(4.71)
ROA	0.0073	0.0071	0.0072
ROA	(1.21)	(1.19)	(1.20)
CEO_DUALITY	0.0012	0.0013	0.0012
CEO_DUALITY	(0.78)	(0.83)	(0.80)
LNCEO_TENURE	−0.0036**	−0.0036**	−0.0026*
LNCEO_TENURE	(−2.41)	(−2.35)	(−1.86)
LNBOARD_SIZE	0.0007	0.0031	0.0007
LNBOARD_SIZE	(0.21)	(0.88)	(0.21)
BOARD_INDEP	−0.0015	−0.0014	−0.0018
BOARD_INDEP	(−0.28)	(−0.26)	(−0.33)
LNANALYSTS	−0.0027***	−0.0027***	−0.0027***
LNANALYSTS	(−2.71)	(−2.74)	(−2.73)
RELATIVESIZE	0.0020	0.0019	0.0020
RELATIVESIZE	(0.63)	(0.63)	(0.63)
ALLCASH	0.0023	0.0023	0.0023
ALLCASH	(1.61)	(1.62)	(1.60)
ALLSTOCK	−0.0116***	−0.0117***	−0.0116***
ALLSTOCK	(−4.74)	(−4.78)	(−4.73)
RELATEDBID	0.0004	0.0004	0.0004
RELATEDBID	(0.26)	(0.25)	(0.26)
TENDEROFFER	−0.0057**	−0.0057**	−0.0057**
TENDEROFFER	(−2.25)	(−2.24)	(−2.25)
COMPETINGBID	−0.0048	−0.0049	−0.0048
COMPETINGBID	(−1.07)	(−1.10)	(−1.08)
CONSTANT	0.0128	0.0070	0.0087
CONSTANT	(0.93)	(0.50)	(0.62)
Year fixed effects	Yes	Yes	Yes
Industry fixed effects	Yes	Yes	Yes
R²	0.0385	0.0384	0.0382
N	8,939	8,939	8,939

	(1)	(2)	(3)
	CAR	CAR	CAR
PCO_OPT	−0.0071***	–	–
PCO_OPT	(−3.44)
NCO_OPT	–	−0.0007***	–
NCO_OPT		(−3.57)
RCO_OPT	–	–	−0.0064***
RCO_OPT			(−3.12)
SIZE	−0.0015***	−0.0014***	−0.0015***
SIZE	(−2.74)	(−2.63)	(−2.77)
LEV	0.0129**	0.0129**	0.0129**
LEV	(2.55)	(2.54)	(2.55)
CASH	−0.0143**	−0.0144**	−0.0143**
CASH	(−2.48)	(−2.50)	(−2.48)
TOBINQ	0.0028***	0.0028***	0.0028***
TOBINQ	(4.71)	(4.70)	(4.71)
ROA	0.0073	0.0071	0.0072
ROA	(1.21)	(1.19)	(1.20)
CEO_DUALITY	0.0012	0.0013	0.0012
CEO_DUALITY	(0.78)	(0.83)	(0.80)
LNCEO_TENURE	−0.0036**	−0.0036**	−0.0026*
LNCEO_TENURE	(−2.41)	(−2.35)	(−1.86)
LNBOARD_SIZE	0.0007	0.0031	0.0007
LNBOARD_SIZE	(0.21)	(0.88)	(0.21)
BOARD_INDEP	−0.0015	−0.0014	−0.0018
BOARD_INDEP	(−0.28)	(−0.26)	(−0.33)
LNANALYSTS	−0.0027***	−0.0027***	−0.0027***
LNANALYSTS	(−2.71)	(−2.74)	(−2.73)
RELATIVESIZE	0.0020	0.0019	0.0020
RELATIVESIZE	(0.63)	(0.63)	(0.63)
ALLCASH	0.0023	0.0023	0.0023
ALLCASH	(1.61)	(1.62)	(1.60)
ALLSTOCK	−0.0116***	−0.0117***	−0.0116***
ALLSTOCK	(−4.74)	(−4.78)	(−4.73)
RELATEDBID	0.0004	0.0004	0.0004
RELATEDBID	(0.26)	(0.25)	(0.26)
TENDEROFFER	−0.0057**	−0.0057**	−0.0057**
TENDEROFFER	(−2.25)	(−2.24)	(−2.25)
COMPETINGBID	−0.0048	−0.0049	−0.0048
COMPETINGBID	(−1.07)	(−1.10)	(−1.08)
CONSTANT	0.0128	0.0070	0.0087
CONSTANT	(0.93)	(0.50)	(0.62)
Year fixed effects	Yes	Yes	Yes
Industry fixed effects	Yes	Yes	Yes
R²	0.0385	0.0384	0.0382
N	8,939	8,939	8,939

Note(s): This table presents the regression results of co-opted boards on acquisition performance with other control variables. Robust two-tailed t-statistics clustered by firm are presented in parentheses. The superscripts ^***, ^** and ^* correspond to statistical significance at the 1%, 5% and 10% levels, respectively. We present the variable definitions in the Appendix

Source(s): Authors’ own work

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