Table 7 Robustness tests
From: Cash holdings, corporate governance, and acquirer returns
(1) | (2) | (3) | (4) | (5) | (6) | (7) | |
|---|---|---|---|---|---|---|---|
CEO incentives | Board and leadership | CARMAR(−2, +2) | Block ownership | Sales expenses | G-index | Classified boards | |
E-index | −0.639** (−2.15) | −0.521* (−1.77) | −0.535* (−1.77) | −0.266 (−0.97) | −0.020 (−0.09) | ||
E-index × Excess Cash | −0.481** (−2.48) | −0.471** (−2.54) | −0.406** (−2.22) | −0.339** (−2.21) | −0.298** (−2.11) | ||
ln(G-index) | −1.344 (−1.16) | ||||||
ln(G-index) × Excess Cash | −1.384** (−2.00) | ||||||
Classified Board | −0.103 (−0.13) | ||||||
Classified Board × Excess Cash | −1.164** (−2.34) | ||||||
Excess Cash | 0.154 (0.58) | 0.107 (0.41) | 0.048 (0.18) | −0.075 (−0.33) | −0.269 (−1.24) | 3.124** (2.02) | 0.892** (2.08) |
ln(Assets) | −0.208 (−0.62) | 0.180 (0.52) | 0.277 (0.80) | 0.185 (0.56) | 0.160 (0.48) | 0.244 (0.70) | 0.244 (0.70) |
MtoB | −0.159 (−0.37) | −0.098 (−0.23) | 0.008 (0.02) | −0.447 (−1.15) | 0.863* (1.94) | −0.120 (−0.27) | −0.102 (−0.22) |
Free Cash Flow | 2.010 (0.40) | 1.989 (0.40) | 2.038 (0.40) | 0.096 (0.02) | 1.760 (0.40) | 2.690 (0.53) | 1.307 (0.26) |
Leverage | 3.628 (1.62) | 2.688 (1.18) | 2.388 (1.06) | 2.201 (1.27) | −0.286 (−0.14) | 2.068 (0.91) | 2.135 (0.95) |
Price Runup | −0.014 (−1.25) | −0.017 (−1.56) | −0.004 (−0.36) | 0.002 (0.16) | −0.020* (−1.82) | −0.019 (−1.61) | −0.018 (−1.61) |
Industry M&A | 0.792 (1.12) | 0.772 (1.06) | 0.724 (0.98) | 1.018 (1.59) | 0.823 (1.38) | 0.775 (1.07) | 0.792 (1.08) |
Relative Deal Size | 1.120 (1.26) | 0.815 (0.89) | 0.599 (0.63) | −0.971 (−0.91) | −0.520 (−0.50) | 0.845 (0.90) | 1.023 (1.12) |
HighTech | 1.260 (1.04) | 1.390 (1.17) | 1.142 (0.97) | −1.266 (−1.25) | −0.695 (−0.58) | 1.450 (1.20) | 1.299 (1.06) |
HighTech × Relative Deal Size | −8.191** (−1.98) | −7.725* (−1.85) | −8.109* (−1.94) | −1.152 (−0.35) | 2.260 (0.34) | −8.072* (−1.93) | −8.269* (−1.96) |
Private Target | −0.929 (−1.19) | −1.184 (−1.53) | −1.456* (−1.86) | −0.895 (−1.30) | −1.452** (−2.31) | −1.221 (−1.58) | −1.235 (−1.60) |
Public Target | −3.956*** (−3.94) | −3.908*** (−4.19) | −3.702*** (−3.93) | −2.078*** (−2.60) | −2.211*** (−3.01) | −3.920*** (−4.24) | −4.114*** (−4.44) |
Hostile Deal | 0.913 (0.38) | 0.896 (0.37) | 1.042 (0.41) | 0.608 (0.35) | −1.572 (−1.00) | 0.957 (0.39) | 0.929 (0.38) |
Cash Only | 0.984 (1.37) | 1.150 (1.64) | 1.101 (1.60) | 0.512 (0.80) | 0.124 (0.21) | 1.142 (1.61) | 1.251* (1.76) |
Stock Only | 0.764 (0.64) | 1.067 (0.89) | 0.881 (0.72) | 0.403 (0.37) | −0.312 (−0.29) | 0.944 (0.77) | 1.135 (0.93) |
Tender Offer | −0.307 (−0.24) | −0.467 (−0.37) | −0.957 (−0.76) | −0.229 (−0.20) | −0.644 (−0.61) | −0.245 (−0.19) | −0.192 (−0.15) |
CEO Ownership | −0.165 (−1.21) | −0.087 (−0.58) | −0.045 (−0.30) | 0.047 (0.37) | 0.207 (1.49) | −0.081 (−0.53) | −0.081 (−0.56) |
CEO Ownership Squared | 0.005 (1.34) | 0.003 (0.83) | 0.003 (0.62) | −0.002 (−0.52) | −0.007* (−1.70) | 0.004 (0.85) | 0.004 (0.91) |
ln(Board Size) | −4.112*** (−2.70) | −4.419*** (−2.83) | −0.809 (−0.54) | −1.575 (−1.14) | −4.058** (−2.56) | −4.449*** (−2.73) | |
Pct. of Ind. Directors | −0.550 (−0.69) | −0.650 (−0.79) | −0.855 (−1.17) | −0.462 (−0.67) | −0.737 (−0.90) | −0.774 (−0.97) | |
CEO-Chair | 2.664 (1.23) | 3.292 (1.51) | 1.908 (1.05) | −0.175 (−0.10) | 2.819 (1.33) | 2.781 (1.26) | |
Intercept | 5.825* (1.76) | 9.448** (2.28) | 9.205** (2.14) | 2.500 (0.62) | 6.358 (1.58) | 10.072** (2.06) | 8.379* (1.94) |
Adj. R2 | 0.076 | 0.089 | 0.070 | 0.034 | 0.066 | 0.079 | 0.082 |
N | 548 | 545 | 545 | 577 | 606 | 545 | 545 |