Table 8 The influence of firm prestige
From: Cash holdings, corporate governance, and acquirer returns
(1) | (2) | (3) | (4) | (5) | |
|---|---|---|---|---|---|
E-index | −0.483 (−1.64) | −1.206*** (−3.18) | −1.248*** (−3.35) | −1.209*** (−3.25) | −1.367*** (−3.24) |
E-index × Excess Cash | −0.431** (−2.34) | −0.518*** (−2.91) | −0.825*** (−3.37) | −0.829*** (−3.34) | −0.827*** (−3.31) |
E-index × Prestige | 1.894*** (3.92) | 1.833*** (3.97) | 1.849*** (4.04) | 1.937*** (3.51) | |
E-index × Excess Cash × Prestige | 0.833*** (2.73) | 0.836*** (2.71) | 0.862** (2.39) | ||
Prestige | −0.918 (−0.85) | −1.147 (−1.10) | −1.052 (−1.04) | −1.200 (−1.18) | −1.691 (−1.49) |
Excess Cash | 0.016 (0.06) | −0.025 (−0.10) | −0.030 (−0.12) | 0.013 (0.05) | −0.156 (−0.57) |
ln(Assets) | 0.472 (1.04) | 0.541 (1.23) | 0.552 (1.26) | 0.595 (1.35) | 1.039** (2.08) |
MtoB | −0.106 (−0.24) | −0.155 (−0.40) | −0.188 (−0.51) | −0.162 (−0.44) | −0.267 (−0.68) |
Free Cash Flow | 3.732 (0.77) | 5.276 (1.08) | 5.314 (1.10) | 5.526 (1.16) | 3.660 (0.78) |
Leverage | 2.318 (1.00) | 2.310 (1.02) | 2.639 (1.16) | 2.647 (1.17) | 1.190 (0.50) |
Price Runup | −0.020* (−1.85) | −0.021** (−1.99) | −0.022** (−2.18) | −0.022** (−2.15) | −0.020* (−1.91) |
Industry M&A | 0.816 (1.14) | 0.826 (1.17) | 0.738 (1.05) | 0.785 (1.11) | 0.745 (1.01) |
Relative Deal Size | 0.874 (0.95) | 0.859 (0.93) | 0.829 (0.91) | 1.100 (1.18) | 1.303 (1.38) |
HighTech | 1.335 (1.11) | 1.255 (1.07) | 1.334 (1.15) | 1.378 (1.16) | 1.783 (1.44) |
HighTech × Relative Deal Size | −7.919* (−1.84) | −7.827* (−1.84) | −7.594* (−1.79) | −7.873* (−1.84) | −7.314* (−1.69) |
Private Target | −1.133 (−1.47) | −1.062 (−1.38) | −1.126 (−1.48) | −2.165** (−2.44) | −2.276** (−2.49) |
Public Target | −3.958*** (−4.14) | −3.628*** (−3.92) | −3.727*** (−4.04) | −5.182*** (−4.57) | −5.556*** (−4.70) |
Hostile Deal | 1.024 (0.42) | 1.409 (0.59) | 1.312 (0.56) | 1.286 (0.54) | 1.241 (0.51) |
Cash Only | 1.137 (1.64) | 1.059 (1.54) | 1.092 (1.59) | −1.124 (−1.09) | −1.171 (−1.07) |
Stock Only | 0.948 (0.80) | 0.696 (0.61) | 0.700 (0.62) | −0.441 (−0.11) | −0.908 (−0.19) |
Tender Offer | −0.162 (−0.13) | −0.012 (−0.01) | 0.095 (0.08) | −1.160 (−0.88) | −0.960 (−0.71) |
CEO Ownership | −0.058 (−0.39) | −0.023 (−0.16) | −0.034 (−0.23) | −0.042 (−0.29) | 0.032 (0.24) |
CEO Ownership Squared | 0.003 (0.71) | 0.002 (0.50) | 0.002 (0.58) | 0.003 (0.63) | 0.001 (0.24) |
ln(Board Size) | −3.589** (−2.36) | −3.819*** (−2.60) | −3.599** (−2.48) | −3.405** (−2.34) | −2.616 (−1.56) |
Pct. of Ind. Directors | 3.009 (1.46) | 3.242 (1.58) | 3.127 (1.53) | 2.711 (1.38) | 2.413 (1.18) |
CEO-Chair | −0.457 (−0.58) | −0.405 (−0.52) | −0.292 (−0.37) | −0.283 (−0.36) | −0.312 (−0.40) |
Private Target × Cash Only | 2.826* (1.67) | 2.250 (1.43) | |||
Public Target × Cash Only | 5.060*** (2.98) | 5.651*** (3.04) | |||
Private Target × Stock Only | 1.731 (0.40) | 1.985 (0.39) | |||
Public Target × Stock Only | 1.588 (0.36) | 1.837 (0.36) | |||
Intercept | 7.510 (1.53) | 6.100 (1.24) | 4.518 (0.86) | 3.699 (0.73) | −1.766 (−0.27) |
Incorporation State Dummy | No | No | No | No | Yes |
Adj. R2 | 0.089 | 0.110 | 0.118 | 0.126 | 0.146 |
N | 545 | 545 | 545 | 545 | 545 |