Table 4 Regression of bidder returns on antitakeover provisions and excess cash
From: Cash holdings, corporate governance, and acquirer returns
(1) | (2) | (3) | (4) | (5) | (6) | (7) | |
|---|---|---|---|---|---|---|---|
High Cash | Low Cash | ||||||
E-index | −0.156 (−1.53) | −0.371*** (−2.75) | −0.152 (−1.38) | −0.522*** (−3.01) | 0.260 (1.46) | −0.133 (−1.21) | −0.133 (−1.22) |
E-index × After | 0.526*** (2.71) | ||||||
Excess Cash | −0.067 (−0.62) | −0.038 (−0.35) | |||||
E-index × Excess Cash | −0.162** (−2.34) | ||||||
Excess CashALT | −0.041 (−0.38) | ||||||
E-index × Excess CashALT | −0.158** (−2.27) | ||||||
ln(Assets) | −0.346*** (−3.19) | −0.398*** (−3.78) | −0.285** (−2.27) | −0.324 (−1.55) | −0.083 (−0.36) | −0.313** (−2.45) | −0.311** (−2.43) |
MtoB | 0.436*** (3.03) | 0.318*** (2.35) | 0.405** (2.54) | 0.230 (0.95) | 0.426 (1.43) | 0.392** (2.45) | 0.393** (2.45) |
Free Cash Flow | 1.526 (0.80) | 2.068 (1.12) | −0.138 (−0.07) | 0.382 (0.14) | 3.791 (0.89) | 0.059 (0.03) | 0.051 (0.02) |
Leverage | 1.461* (1.81) | 1.244 (1.64) | 1.037 (1.19) | 1.946 (1.39) | −0.602 (−0.42) | 1.142 (1.30) | 1.135 (1.30) |
Price Runup | −0.012*** (−3.01) | −0.008** (−2.20) | −0.011** (−2.58) | −0.006 (−0.79) | −0.026*** (−3.99) | −0.011*** (−2.62) | −0.011*** (−2.62) |
Industry M&A | −0.245 (−0.93) | −0.168 (−0.64) | −0.294 (−1.07) | −0.099 (−0.21) | −0.351 (−0.76) | −0.309 (−1.13) | −0.308 (−1.12) |
Relative Deal Size | 1.120** (2.01) | 1.015* (1.76) | 1.167** (2.10) | −0.284 (−0.31) | 0.870 (1.02) | 1.161** (2.10) | 1.162** (2.10) |
HighTech | 0.323 (0.75) | 0.390 (0.97) | 0.464 (1.11) | 1.306* (1.95) | −1.046 (−1.49) | 0.428 (1.03) | 0.430 (1.03) |
HighTech × Relative Deal Size | −3.228* (−1.72) | −3.593** (−2.08) | −4.033** (−2.12) | −3.964 (−1.24) | −0.982 (−0.31) | −3.918** (−2.06) | −3.921** (−2.06) |
Private Target | −0.887*** (−2.94) | −0.970*** (−3.24) | −1.006*** (−3.32) | −0.986* (−1.92) | −0.901** (−2.03) | −0.993*** (−3.26) | −0.993*** (−3.26) |
Public Target | −2.910*** (−6.88) | −2.891*** (−6.80) | −3.154*** (−7.05) | −2.860*** (−4.90) | −4.012*** (−5.23) | −3.135*** (−7.04) | −3.135*** (−7.04) |
Hostile Deal | 0.071 (0.09) | 0.009 (0.01) | 0.003 (0.00) | 0.031 (0.03) | 0.694 (0.65) | 0.006 (0.01) | 0.007 (0.01) |
Cash Only | 0.535* (1.95) | 0.581** (2.18) | 0.690** (2.41) | 0.924* (1.80) | 0.600 (1.42) | 0.694** (2.42) | 0.694** (2.42) |
Stock Only | −0.508 (−0.96) | −0.540 (−1.04) | −0.330 (−0.60) | −0.762 (−1.06) | 0.601 (0.60) | −0.356 (−0.65) | −0.357 (−0.65) |
Tender Offer | 1.053* (1.87) | 1.043* (1.86) | 1.328** (2.28) | 0.546 (0.76) | 2.411** (2.34) | 1.330** (2.29) | 1.330** (2.29) |
Intercept | 3.566*** (2.60) | 3.090* (1.86) | 3.546** (2.36) | 2.311 (0.77) | 3.897 (1.07) | 3.713** (2.44) | 3.693** (2.43) |
Adj. R2 | 0.050 | 0.050 | 0.056 | 0.068 | 0.067 | 0.057 | 0.057 |
N | 3,340 | 3,340 | 3,057 | 1,222 | 1,184 | 3,057 | 3,057 |