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Table 2 Descriptive statistics

From: Cash holdings, corporate governance, and acquirer returns

Panel A. Deal characteristics

Private Target

0.39

Tender Offer

0.07

Public Target

0.26

HighTech

0.38

Hostile Deal

0.03

Industry M&A

0.36

Cash Only

0.43

Deal Value($MM)

666.1 [130.0]

Stock Only

0.13

Relative Deal Size

0.20 [0.07]

  

Price Runup

0.11 [0.03]

Panel B. Acquirer characteristics

Assets ($Mil)

5,080 [1,612]

Free Cash Flow

0.02 [0.04]

MtoB

2.02 [1.61]

Leverage

0.20 [0.17]

Panel C. Excess cash, industry NPM, and public pension fund ownership

Excess Cash

0.058 [0.220]

Industry NPM

0.135 [0.117]

Excess CashALT

0.059 [0.225]

Pension Ownership

0.022 [0.020]

  1. This table provides summary statistics for the sample of 3,340 acquiring firm-year observations from 1996 to 2006. Deal characteristics are obtained from the SDC M&A database. Private (Public) Target is a dummy variable indicating private (public) status of target companies. The remaining targets are from subsidiaries. Hostile Deal is a dummy variable indicating hostile takeover attempt. Cash (Stock) Only is a dummy variable indicating one hundred percent cash (stock) offer. Tender Offer is a dummy variable indicating whether tender-offer is launched for the target. HighTech is a dummy variable indicating whether acquirers and targets are in high-tech industries defined in SDC. Industry M&A is a dummy variable indicating that acquirers and targets are in the same three-digit SIC industries. Deal value is the dollar value of consideration paid by the acquirer excluding fees and expenses, as reported in SDC. Relative Deal Size is deal value divided by acquirer market capitalization measured three months before the acquisition announcement date. Price Runup is buy-and-hold returns of acquirers during the (−252, −11) days before the announcement date. Acquirer characteristics are computed using data from COMPUSTAT, and pension ownership data is from 13f filings. Assets is the book value of assets (item 6). MtoB is [the book value of assets minus (book value of equity and deferred tax) plus (the number of shares outstanding times fiscal year ending price)] divided by the book value of total assets ((item 6 - item 60 - item74 + item 25*item 199) / item 6)). Free Cash Flow is (net income before extraordinary items plus depreciation minus capital expenditure) divided by the book value of assets ((item 18 + item 14 – item 128)/ item 6). Leverage is (long-term debt plus short-term debt) divided by (book value of assets minus current liabilities plus short-term debt ((item 9 + item 34)/(item 6 – item 5 + item 34)). Cash Holdings are cash and short-term investment (item 1) divided by net assets (item 6 minus item 1). Excess Cash is cash holdings net of the normal cash level estimated with the fixed-effect model (1) in Table 3. Excess Cash ALT is excess cash estimated with the fixed-effect model (2) in Table 3. Pension Ownership is share ownership held by the 19 largest public pension funds. Industry NPM is the industry median net profit margin for the Fama-French 48 industries. Means and medians in the blanket are reported. All variables are winsorized at the 1st and 99th percentiles