Endogeneity-corrected regression output
| Panel A: first stage | Panel B: second stage | |||||
|---|---|---|---|---|---|---|
| (1) | (2) | (3) | (4) | (5) | (6) | |
| PCO_OPT | NCO_OPT | RCO_OPT | CAR | CAR | CAR | |
| PCO_OPT_FIRST | 0.6017*** | – | – | – | – | – |
| (37.28) | ||||||
| NCO_OPT_FIRST | – | 0.0523*** | – | – | – | – |
| (23.00) | ||||||
| RCO_OPT_FIRST | – | – | 0.6241*** | – | – | – |
| (40.40) | ||||||
| IVPCO_OPT | – | – | – | −0.0091*** | – | – |
| (−3.39) | ||||||
| IVNCO_OPT | – | – | – | – | −0.0087*** | – |
| (−3.50) | ||||||
| IVRCO_OPT | – | – | – | – | – | −0.0094*** |
| (−3.40) | ||||||
| SIZE | 0.0149*** | 0.0084 | 0.0182*** | −0.0016*** | −0.0017*** | −0.0017*** |
| (3.34) | (1.55) | (4.14) | (−3.04) | (−3.07) | (−3.07) | |
| LEV | 0.0154 | 0.0358 | 0.0152 | 0.0130** | 0.0129** | 0.0129** |
| (0.56) | (1.17) | (0.56) | (2.57) | (2.54) | (2.54) | |
| CASH | 0.0337 | 0.0505 | 0.0469 | −0.0144** | −0.0141** | −0.0141** |
| (0.89) | (1.21) | (1.21) | (−2.50) | (−2.44) | (−2.44) | |
| TOBINQ | −0.0034 | −0.0029 | −0.0031 | 0.0028*** | 0.0028*** | 0.0028*** |
| (−0.81) | (−0.59) | (−0.74) | (4.80) | (4.74) | (4.74) | |
| ROA | 0.0515** | 0.0726*** | 0.0396* | 0.0065 | 0.0063 | 0.0062 |
| (2.46) | (2.73) | (1.89) | (1.09) | (1.04) | (1.04) | |
| CEO_DUALITY | 0.0142 | 0.0065 | 0.0136 | 0.0013 | 0.0012 | 0.0012 |
| (1.35) | (0.54) | (1.30) | (0.82) | (0.79) | (0.79) | |
| LNCEO_TENURE | −0.1874*** | −0.1919*** | −0.2127*** | −0.0021 | −0.0020 | −0.0020 |
| (−16.45) | (−15.17) | (−19.71) | (−1.55) | (−1.45) | (−1.45) | |
| LNBOARD_SIZE | −0.0042 | −0.1562*** | −0.0038 | 0.0001 | −0.0001 | −0.0001 |
| (−0.22) | (−6.62) | (−0.21) | (0.04) | (−0.04) | (−0.04) | |
| BOARD_INDEP | 0.0540* | 0.0588* | 0.0444 | −0.0034 | −0.0025 | −0.0025 |
| (1.71) | (1.72) | (1.48) | (−0.64) | (−0.47) | (−0.47) | |
| LNANALYSTS | 0.0227*** | 0.0285*** | 0.0242*** | −0.0028*** | −0.0028*** | −0.0028*** |
| (3.79) | (4.28) | (4.20) | (−2.87) | (−2.83) | (−2.83) | |
| RELATIVESIZE | – | – | – | 0.0020 | 0.0012 | 0.0012 |
| (0.64) | (0.39) | (0.38) | ||||
| ALLCASH | – | – | – | 0.0023 | 0.0023 | 0.0023 |
| (1.62) | (1.59) | (1.59) | ||||
| ALLSTOCK | – | – | – | −0.0115*** | −0.0120*** | −0.0120*** |
| (−4.70) | (−4.88) | (−4.89) | ||||
| RELATEDBID | – | – | – | 0.0004 | 0.0005 | 0.0005 |
| (0.25) | (0.34) | (0.34) | ||||
| TENDEROFFER | – | – | – | −0.0057** | −0.0056** | −0.0056** |
| (−2.26) | (−2.18) | (−2.18) | ||||
| COMPETINGBID | – | – | – | −0.0051 | −0.0046 | −0.0048 |
| (−1.15) | (−1.02) | (−1.06) | ||||
| CONSTANT | 0.0635 | 0.4850*** | 0.3755*** | 0.0126 | 0.0132 | 0.0132 |
| (0.60) | (3.04) | (3.74) | (0.90) | (0.95) | (0.94) | |
| Year fixed effects | Yes | Yes | Yes | Yes | Yes | Yes |
| Industry fixed effects | Yes | Yes | Yes | Yes | Yes | Yes |
| R2 | 0.5250 | 0.4667 | 0.5428 | 0.0384 | 0.0385 | 0.0385 |
| N | 8,939 | 8,939 | 8,939 | 8,939 | 8,939 | 8,939 |
| Weak identification test | ||||||
| Kleibergen-Paap rk Wald F statistic | 3682.84 | 3890.09 | 3419.81 | – | – | – |
| p-value | 0.0000 | 0.0000 | 0.0000 | |||
| Test of endogeneity: Durbin–Wu–Hausman test | ||||||
| F statistics | – | – | – | 11.47 | 12.28 | 11.58 |
| p-value | 0.0007 | 0.0005 | 0.0007 | |||
| Panel A: first stage | Panel B: second stage | |||||
|---|---|---|---|---|---|---|
| (1) | (2) | (3) | (4) | (5) | (6) | |
| PCO_OPT | NCO_OPT | RCO_OPT | CAR | CAR | CAR | |
| PCO_OPT_FIRST | 0.6017*** | – | – | – | – | – |
| (37.28) | ||||||
| NCO_OPT_FIRST | – | 0.0523*** | – | – | – | – |
| (23.00) | ||||||
| RCO_OPT_FIRST | – | – | 0.6241*** | – | – | – |
| (40.40) | ||||||
| IVPCO_OPT | – | – | – | −0.0091*** | – | – |
| (−3.39) | ||||||
| IVNCO_OPT | – | – | – | – | −0.0087*** | – |
| (−3.50) | ||||||
| IVRCO_OPT | – | – | – | – | – | −0.0094*** |
| (−3.40) | ||||||
| SIZE | 0.0149*** | 0.0084 | 0.0182*** | −0.0016*** | −0.0017*** | −0.0017*** |
| (3.34) | (1.55) | (4.14) | (−3.04) | (−3.07) | (−3.07) | |
| LEV | 0.0154 | 0.0358 | 0.0152 | 0.0130** | 0.0129** | 0.0129** |
| (0.56) | (1.17) | (0.56) | (2.57) | (2.54) | (2.54) | |
| CASH | 0.0337 | 0.0505 | 0.0469 | −0.0144** | −0.0141** | −0.0141** |
| (0.89) | (1.21) | (1.21) | (−2.50) | (−2.44) | (−2.44) | |
| TOBINQ | −0.0034 | −0.0029 | −0.0031 | 0.0028*** | 0.0028*** | 0.0028*** |
| (−0.81) | (−0.59) | (−0.74) | (4.80) | (4.74) | (4.74) | |
| ROA | 0.0515** | 0.0726*** | 0.0396* | 0.0065 | 0.0063 | 0.0062 |
| (2.46) | (2.73) | (1.89) | (1.09) | (1.04) | (1.04) | |
| CEO_DUALITY | 0.0142 | 0.0065 | 0.0136 | 0.0013 | 0.0012 | 0.0012 |
| (1.35) | (0.54) | (1.30) | (0.82) | (0.79) | (0.79) | |
| LNCEO_TENURE | −0.1874*** | −0.1919*** | −0.2127*** | −0.0021 | −0.0020 | −0.0020 |
| (−16.45) | (−15.17) | (−19.71) | (−1.55) | (−1.45) | (−1.45) | |
| LNBOARD_SIZE | −0.0042 | −0.1562*** | −0.0038 | 0.0001 | −0.0001 | −0.0001 |
| (−0.22) | (−6.62) | (−0.21) | (0.04) | (−0.04) | (−0.04) | |
| BOARD_INDEP | 0.0540* | 0.0588* | 0.0444 | −0.0034 | −0.0025 | −0.0025 |
| (1.71) | (1.72) | (1.48) | (−0.64) | (−0.47) | (−0.47) | |
| LNANALYSTS | 0.0227*** | 0.0285*** | 0.0242*** | −0.0028*** | −0.0028*** | −0.0028*** |
| (3.79) | (4.28) | (4.20) | (−2.87) | (−2.83) | (−2.83) | |
| RELATIVESIZE | – | – | – | 0.0020 | 0.0012 | 0.0012 |
| (0.64) | (0.39) | (0.38) | ||||
| ALLCASH | – | – | – | 0.0023 | 0.0023 | 0.0023 |
| (1.62) | (1.59) | (1.59) | ||||
| ALLSTOCK | – | – | – | −0.0115*** | −0.0120*** | −0.0120*** |
| (−4.70) | (−4.88) | (−4.89) | ||||
| RELATEDBID | – | – | – | 0.0004 | 0.0005 | 0.0005 |
| (0.25) | (0.34) | (0.34) | ||||
| TENDEROFFER | – | – | – | −0.0057** | −0.0056** | −0.0056** |
| (−2.26) | (−2.18) | (−2.18) | ||||
| COMPETINGBID | – | – | – | −0.0051 | −0.0046 | −0.0048 |
| (−1.15) | (−1.02) | (−1.06) | ||||
| CONSTANT | 0.0635 | 0.4850*** | 0.3755*** | 0.0126 | 0.0132 | 0.0132 |
| (0.60) | (3.04) | (3.74) | (0.90) | (0.95) | (0.94) | |
| Year fixed effects | Yes | Yes | Yes | Yes | Yes | Yes |
| Industry fixed effects | Yes | Yes | Yes | Yes | Yes | Yes |
| 0.5250 | 0.4667 | 0.5428 | 0.0384 | 0.0385 | 0.0385 | |
| 8,939 | 8,939 | 8,939 | 8,939 | 8,939 | 8,939 | |
| Weak identification test | ||||||
| Kleibergen-Paap rk Wald | 3682.84 | 3890.09 | 3419.81 | – | – | – |
| 0.0000 | 0.0000 | 0.0000 | ||||
| – | – | – | 11.47 | 12.28 | 11.58 | |
| 0.0007 | 0.0005 | 0.0007 | ||||
Note(s): This table reports the endogeneity-corrected regression results by employing the 2SLS regressions approach. Panel A reports first-stage regression output where the categorical PCO_OPT, NCO_OPT and RCO_OPT variables are regressed on the respective instrumental variables with other firm-specific control variables. Panel B reports the second-stage regression output where the acquisition performance is regressed on the instrumented PCO_OPT, NCO_OPT and RCO_OPT variables and 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
Source(s): Authors’ own work
Sharing content requires targeting cookies to be enabled. Please update your cookie preferences to use this feature.