Table 7 Lasso selection and Lasso...

Table 7

Lasso selection and Lasso reference models

	(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)	(9)
	CAR	CAR	CAR	CAR	CAR	CAR	CAR	CAR	CAR
Panel A: Lasso selection models
PCO_OPT	−0.0042	−0.0046	−0.0005	–	–	–	–	–	–
NCO_OPT	–	–	–	−0.0004	−0.0005	−0.0002	–	–	–
RCO_OPT	–	–	–	–	–	–	−0.0046	−0.0048	–
SIZE	−0.0016	−0.0020	−0.0007	−0.0014	−0.0015	−0.0006	−0.0016	−0.0019	−0.0007
LEV	0.0116	0.0135	0.0013	0.0116	0.0137	0.0009	0.0120	0.0135	0.0013
CASH	−0.0104	−0.0147	X	−0.0113	−0.0143	X	−0.0113	−0.0147	X
TOBINQ	0.0016	0.0022	X	0.0018	0.0024	X	0.0018	0.0023	X
ROA	0.0039	0.0038	X	0.0043	0.0057	X	0.0047	0.0045	X
CEO_DUALITY	−0.0001	X	X	X	X	X	X	X	X
LNCEO_TENURE	X	X	X	−0.0005	−0.0016	X	−0.0001	X	X
LNBOARD_SIZE	X	X	X	X	X	X	X	X	X
BOARD_INDEP	X	X	X	X	X	X	X	X	X
LNANALYSTS	−0.0020	−0.0021	−0.0006	−0.0021	−0.0025	−0.0006	−0.0022	−0.0022	−0.0006
RELATIVESIZE	0.0006	X	X	0.0008	0.0008	X	0.0009	X	X
ALLCASH	0.0011	0.0005	X	0.0013	0.0019	X	0.0014	0.0009	X
ALLSTOCK	−0.0111	−0.0126	−0.0048	−0.0111	−0.0121	−0.0049	−0.0112	−0.0125	−0.0048
RELATEDBID	−0.0003	X	X	−0.0004	−0.0004	X	−0.0006	X	X
TENDEROFFER	−0.0034	−0.0033	X	−0.0038	−0.0050	X	−0.0040	−0.0038	X
COMPETINGBID	−0.0011	X	X	−0.0018	−0.0021	X	−0.0020	X	X
Year fixed effects	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Industry fixed effects	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
N	8,939	8,939	8,939	8,939	8,939	8,939	8,939	8,939	8,939
Panel B: Lasso inference models
PCO_OPT	−0.0071^***	−0.0071^***	−0.0074^***	–	–	–	–	–	–
PCO_OPT	(0.00)	(0.00)	(0.00)
NCO_OPT	–	–	–	−0.0007^***	−0.0007^***	−0.0007^***	–	–	–
NCO_OPT				(0.00)	(0.00)	(0.00)
RCO_OPT	–	–	–	–	–	–	−0.0064^**	−0.0064^**	−0.0068^***
RCO_OPT							(0.00)	(0.00)	(0.00)
Controls	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Year fixed effects	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Industry fixed effects	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
N	8,939	8,939	8,939	8,939	8,939	8,939	8,939	8,939	8,939

	(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)	(9)
	CAR	CAR	CAR	CAR	CAR	CAR	CAR	CAR	CAR
Panel A: Lasso selection models
PCO_OPT	−0.0042	−0.0046	−0.0005	–	–	–	–	–	–
NCO_OPT	–	–	–	−0.0004	−0.0005	−0.0002	–	–	–
RCO_OPT	–	–	–	–	–	–	−0.0046	−0.0048	–
SIZE	−0.0016	−0.0020	−0.0007	−0.0014	−0.0015	−0.0006	−0.0016	−0.0019	−0.0007
LEV	0.0116	0.0135	0.0013	0.0116	0.0137	0.0009	0.0120	0.0135	0.0013
CASH	−0.0104	−0.0147	X	−0.0113	−0.0143	X	−0.0113	−0.0147	X
TOBINQ	0.0016	0.0022	X	0.0018	0.0024	X	0.0018	0.0023	X
ROA	0.0039	0.0038	X	0.0043	0.0057	X	0.0047	0.0045	X
CEO_DUALITY	−0.0001	X	X	X	X	X	X	X	X
LNCEO_TENURE	X	X	X	−0.0005	−0.0016	X	−0.0001	X	X
LNBOARD_SIZE	X	X	X	X	X	X	X	X	X
BOARD_INDEP	X	X	X	X	X	X	X	X	X
LNANALYSTS	−0.0020	−0.0021	−0.0006	−0.0021	−0.0025	−0.0006	−0.0022	−0.0022	−0.0006
RELATIVESIZE	0.0006	X	X	0.0008	0.0008	X	0.0009	X	X
ALLCASH	0.0011	0.0005	X	0.0013	0.0019	X	0.0014	0.0009	X
ALLSTOCK	−0.0111	−0.0126	−0.0048	−0.0111	−0.0121	−0.0049	−0.0112	−0.0125	−0.0048
RELATEDBID	−0.0003	X	X	−0.0004	−0.0004	X	−0.0006	X	X
TENDEROFFER	−0.0034	−0.0033	X	−0.0038	−0.0050	X	−0.0040	−0.0038	X
COMPETINGBID	−0.0011	X	X	−0.0018	−0.0021	X	−0.0020	X	X
Year fixed effects	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Industry fixed effects	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
N	8,939	8,939	8,939	8,939	8,939	8,939	8,939	8,939	8,939
Panel B: Lasso inference models
PCO_OPT	−0.0071^***	−0.0071^***	−0.0074^***	–	–	–	–	–	–
PCO_OPT	(0.00)	(0.00)	(0.00)
NCO_OPT	–	–	–	−0.0007^***	−0.0007^***	−0.0007^***	–	–	–
NCO_OPT				(0.00)	(0.00)	(0.00)
RCO_OPT	–	–	–	–	–	–	−0.0064^**	−0.0064^**	−0.0068^***
RCO_OPT							(0.00)	(0.00)	(0.00)
Controls	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Year fixed effects	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Industry fixed effects	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
N	8,939	8,939	8,939	8,939	8,939	8,939	8,939	8,939	8,939

Note(s): This table presents the results of the Lasso selection model for board co-option and acquisition performance. The Lasso model selection method (Panel A) is used to estimate effects for potential independent and control variables to be included in the model. Model 1 uses adaptive Lasso selection model; Model 2 is Lasso selection model with cross-validation method; Model 3 employs plug-in method. Omitted variables by the Lasso selection are denoted as (X). Panel B presents Lasso inference models based on double-selection Lasso regression

Source(s): Authors’ own work

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