Figure 1
The figure includes five-line charts. The first line chart titled “Cross-industry deals” shows the horizontal axis labeled “Year” with three labeled points from left to right, “Pre,” “During,” and “After”. The vertical axis is labeled “L n underscore (1 plus Count)” and ranges from 0.23 to 0.35 in increments of 0.03 units. Two lines are plotted. A legend at the bottom left shows that the solid line indicates “Pilot group” and the dashed line indicates “Control group”. The solid line begins at (Pre, 0.3), passes through (During year, 0.28), and declines to (After, 0.235). The dashed line starts at (Pre, 0.28), rises to (During year, 0.315), and declines to (After, 0.244). The second line chart titled “Within-industry deals” shows the horizontal axis labeled “Year” with three labeled points from left to right, “Pre,” “During,” and “After”. The vertical axis is labeled “L n underscore (1 plus Count)” and ranges from 0.23 to 0.35 in increments of 0.03 units. Two lines are plotted. A legend at the bottom left shows that the solid line indicates “Pilot group” and the dashed line indicates “Control group”. The solid line begins at (Pre, 0.295), rises to (During year, 0.32), and declines to (After, 0.26). The dashed line starts at (Pre, 0.31), rises to (During year, 0.325), and declines to (After, 0.26). The third line chart titled “Deals with a negative C A R” shows the horizontal axis labeled “Year” with three labeled points from left to right, “Pre,” “During,” and “After”. The vertical axis is labeled “L n underscore (1 plus Count)” and ranges from 0.26 to 0.38 in increments of 0.03 units. Two lines are plotted. A legend at the bottom left shows that the solid line indicates “Pilot group” and the dashed line indicates “Control group”. The solid line begins at (Pre, 0.345), declines to (During year, 0.30), and further declines to (After, 0.264). The dashed line starts at (Pre, 0.32), declines to (During year, 0.34), and further decreases to (After, 0.282). The fourth line chart titled “Deals with a positive C A R” shows the horizontal axis labeled “Year” with three labeled points from left to right, “Pre,” “During,” and “After”. The vertical axis is labeled “L n underscore (1 plus Count)” and ranges from 0.17 to 0.29 in increments of 0.03 units. Two lines are plotted. A legend at the bottom left shows that the solid line indicates “Pilot group” and the dashed line indicates “Control group”. The solid line begins at (Pre, 0.208), rises to (During year, 0.27), and declines to (After, 0.204). The dashed line starts at (Pre, 0.229), rises to (During year, 0.267), and declines to (After, 0.203). The fifth line chart titled “All deals” shows the horizontal axis labeled “Year” with three labeled points from left to right, “Pre,” “During,” and “After”. The vertical axis is labeled “L n underscore (1 plus Count)” and ranges from 0.37 to 0.47 in increments of 0.03 units. Two lines are plotted. A legend at the bottom left shows that the solid line indicates “Pilot group” and the dashed line indicates “Control group”. The solid line begins at (Pre, 0.418), rises to (During year, 0.426), and declines to (After, 0.355). The dashed line starts at (Pre, 0.408), rises to (During year, 0.44), and declines to (After, 0.361). Note: All numerical data values are approximated.M&A frequency. This graph plots the cross-sectional mean of Ln_(1 + Count) during the Pre, During, and After periods for firms in the pilot group (solid line) and control group (dashed line), respectively. The top, middle, and bottom panels plot the results of deals classified by industry or CAR and all deals, respectively. Figure by authors