Table 6 The interactive effect of excess cash, industry competition, and public pension fund ownership
From: Cash holdings, corporate governance, and acquirer returns
(1) | (2) | (3) | (4) | (5) | (6) | (7) | (8) | |
|---|---|---|---|---|---|---|---|---|
High Pension | Low Pension | High Pension | Low Pension | High Pension | Low Pension | High Pension | Low Pension | |
High Competition | High Competition | Low Competition | Low Competition | High Competition | High Competitive | Low Competition | Low Competition | |
E-index | −0.047 (−0.23) | −0.061 (−0.25) | −0.056 (−0.31) | −0.544** (−2.34) | −0.052 (−0.25) | −0.000 (−0.00) | 0.006 (0.04) | −0.588** (−2.40) |
E-index × Excess Cash | −0.134 (−0.79) | −0.185 (−1.23) | −0.026 (−0.22) | −0.343** (−2.12) | ||||
Excess Cash | −0.132 (−0.46) | −0.186 (−0.72) | −0.187 (−0.99) | 0.229 (1.05) | ||||
ln(Assets) | −0.635*** (−2.75) | −0.442 (−1.59) | −0.344* (−1.82) | 0.022 (0.10) | −0.530* (−1.87) | −0.200 (−0.58) | −0.226 (−1.12) | −0.235 (−0.90) |
MtoB | 0.463 (1.35) | 0.433* (1.71) | 0.630** (2.19) | 0.008 (0.02) | 0.499 (1.48) | 0.493 (1.64) | 0.621** (2.30) | −0.007 (−0.02) |
Free Cash Flow | 6.086 (1.30) | 3.029 (0.92) | 1.578 (0.47) | 2.490 (0.57) | 4.068 (0.84) | −0.216 (−0.06) | 0.794 (0.24) | 3.805 (0.83) |
Leverage | 2.098 (1.19) | 1.224 (0.74) | 2.872* (1.93) | 2.738* (1.65) | 1.410 (0.75) | 0.396 (0.21) | 1.586 (1.06) | 2.610 (1.50) |
Price Runup | −0.023*** (−3.06) | −0.007 (−1.05) | −0.014** (−2.23) | −0.019** (−2.41) | −0.026*** (−3.53) | −0.007 (−1.02) | −0.014** (−2.16) | −0.018** (−2.24) |
Industry M&A | −0.292 (−0.49) | −0.143 (−0.25) | −0.829* (−1.71) | 0.639 (1.06) | −0.515 (−0.84) | −0.015 (−0.02) | −0.711 (−1.44) | 0.381 (0.62) |
Relative Deal Size | 1.815 (1.12) | 0.738 (0.69) | −0.455 (−0.38) | 1.946** (2.08) | 2.108 (1.31) | 0.829 (0.74) | −0.399 (−0.32) | 1.908** (2.03) |
HighTech | 1.548* (1.97) | 0.472 (0.53) | −1.145 (−1.64) | 1.321 (1.30) | 1.436* (1.84) | 0.854 (0.85) | −1.181* (−1.67) | 1.348 (1.45) |
HighTech × Relative Deal Size | −6.584* (−1.83) | 0.008 (0.00) | 0.973 (0.38) | −9.614*** (−2.89) | −7.042* (−1.84) | −0.000 (−0.00) | 0.340 (0.13) | −10.249*** (−3.01) |
Private Target | −1.539*** (−2.77) | −0.722 (−1.08) | −0.692 (−1.38) | −0.982 (−1.52) | −1.478** (−2.55) | −0.938 (−1.36) | −0.853 (−1.64) | −1.092* (−1.67) |
Public Target | −2.752*** (−3.32) | −3.126*** (−3.21) | −1.884*** (−2.75) | −4.037*** (−4.54) | −2.812*** (−3.23) | −3.915*** (−3.53) | −1.839*** (−2.63) | −4.111*** (−4.36) |
Hostile Deal | −0.088 (−0.05) | −2.255 (−1.29) | 0.422 (0.37) | 1.005 (0.54) | −0.071 (−0.04) | −2.144 (−1.09) | 0.553 (0.51) | 0.496 (0.25) |
Cash Only | 0.746 (1.33) | 0.022 (0.04) | 0.699 (1.41) | 0.657 (1.09) | 0.894 (1.60) | 0.302 (0.44) | 0.635 (1.30) | 1.047* (1.68) |
Stock Only | −1.588 (−1.50) | −0.736 (−0.68) | 0.494 (0.49) | 0.150 (0.15) | −1.736 (−1.56) | −0.358 (−0.31) | 0.467 (0.46) | 0.441 (0.41) |
Tender Offer | 0.887 (0.78) | 1.633 (1.19) | 1.280 (1.42) | 0.280 (0.24) | 0.988 (0.82) | 2.345 (1.57) | 1.369 (1.48) | 0.376 (0.32) |
Intercept | 1.916 (0.82) | 4.093 (1.48) | 1.085 (0.41) | 3.118 (1.16) | 1.015 (0.39) | 4.126 (1.31) | 0.623 (0.23) | 5.670** (2.24) |
Adj. R2 | 0.080 | 0.015 | 0.031 | 0.088 | 0.087 | 0.013 | 0.038 | 0.096 |
N | 796 | 885 | 874 | 785 | 747 | 755 | 841 | 714 |