|
| Variables | Definition |
|
| Premium | Takeover premium = (Transaction deal value − Target’s market value of equity)/Target’s market value of equity |
| Cash_payment | Dummy variable equals 1 if the CBMA deal is paid in cash |
| Target_size | Target’s total assets before the CBMA announcement (logarithm is used in regression) |
| Target_turnover | Target’s total revenue before the CBMA announcement (logarithm is used in regression) |
| Target_ROA | Target’s net profit divided by its total assets before the CBMA announcement |
| Target_lev | Target’s total liability is divided by its total equity |
| Target_hightech | Dummy variable equals 1 if the target firm is from the high-tech industry |
| Acquirer_size | Acquirer’s total assets before the CBMA announcement (logarithm is used in regression) |
| Relative_size | Target size divided by the acquirer size |
| Acquirer_listed | Dummy variable equals 1 if the acquirer is a public listed company and 0 otherwise |
| Acquirer_hightech | Dummy variable equals 1 if the acquiring firm is from high-tech industry |
| Toehold | Dummy variable equals 1 if the acquirer holds a nonzero percentage of the target’s shares before the announcement and 0 otherwise |
| Final_control | Dummy variable equals 1 if the acquirer holds a percentage of the target’s share greater than 51% after the M&A deal and 0 otherwise |
| Horizontal | Dummy variable equals 1 if the target and acquirer are from the same industry and 0 otherwise |
| GDP | Nominal GDP in US$ translated using purchasing power parity exchange rates, divided by population (logarithm is used in regression) |
| TFP_FAPG | Total factor productivity is part of economic output, calculated by dividing GDP growth by employment growth and estimated growth in the capital stock |
| Export | Exports of goods and services at constant market prices of a country, rebased to 2010 constant prices and translated into US$ using the local currency unit:$ exchange rate in 2010 (logarithm is used in regression) |
| LogDistance | Geographical distance between the capital cities of the acquiring and target countries (logarithm is used in regression) |
|
