Professional Documents
Culture Documents
CBMA (EM)
Sample Size: 161
CBMA( ADTE)
Sample Size: 111
CBMA( AETD)
Sample Size: 39
Mean:3.96
Median : 6.8
SD :1.31
Max:37.90
Min:-37.90
Range:75.8
Mean:11.88
Median : 13.6
SD: 1.07
Max:37.90
Min:-12.10
Range:50
Mean :-18.28
Median : -16.1
SD : 1.462
Max :-0.3
Min:-37.9
Range:37.6
Mean: 68.76
Median : 68.9
SD : 0.74
Max:90
Min:52
Range:42
Mean:72.38
Median :73.3
SD: 0.76
Max:90
Min:57.4
Range :32.6
Mean :60.02
Median : 61.7
SD: 0.96
Max :77.7
Min:52
Range:25.7
Mean: 64.9
Median : 63.3
SD: 0.80
Max :91.7
Min:49
Range: 42.7
Mean : 60.48
Median: 61.1
SD :7.23
Max: 91.7
Min:49
Range: 42.7
Mean: 78.34
Median: 0.910
SD: 5.75
Max :89.9
Min :64.6
Range :25.3
Acq_EF_scor
e
Tar_Ef_scor
e
Post acq
24
Pre acq
Target
ratio
Related
Industry
Cash
deal
Deal value
Per owned
Tender
ofer
EF dif
Acq_Ef_Score
Tar_Ef_Score
.376**
.144
.035
-.065
.097
-.251**
-.154
.034
.290**
.112
.146
-.111
-.050
-.259**
-.085
.085
-.359**
-.137
.078
.005
.176
.178*
.023
-.210*
*
Acq_EF_scor
e
Tar_Ef_sco
re
Acq_Ef_Score
Tar_Ef_Score
Post acq
Pre acq
Target
ratio
Related
Industry
Cash
deal
Deal
value
Per owned
Tender ofer
.141
.139
.007
.022
.037
-.223*
-.053
.177
.046
.083
.166
-.016
-.152
-.229*
.062
.014
-.181
-.133
.190*
-.055
.096
.163
-.058
-.247*
*
Acq_EF_scor
e
Tar_Ef_scor
e
1
1
1
Post acq
Pre acq
Target
ratio
Related
Industry
Cash
deal
Deal value
Per owned
Tender
ofer
.269
.174
-.193
.336*
-.092
-.096
.314
.181
.209
.155
-.170
.074
-.142
-.256
.010
.055
-.209
-.116
.131
-.435**
.006
-.093
-.462
-.220
25
This Table shows analysis using static random effects model for full sample. Values are coefficients and standard error in parenthesis, Dependent variable:
Industry-adjusted post-acquisition operating performance. *** Significant at 1%, ** Significant at 5%, * Significant at 10%.
Variable name
CBMA-EM
t- value
Constant
Sample size
Economic
difference
freedom
Acq.
Economic
score
freedom
Tar.
Economic
score
freedom
Beta
t-value
Beta
t-value
Beta
t-value
5.033*
**
161
.376
2.939***
161
ADTE
5.769***
161
5.123*
**
4.114*
**
111
.141
AETD
.366
111
2.758
**
111
.046
.476
-.359
-4.858***
Year effect
Country effect
R
R2
Adjusted R2
Wald chi2
sigma _
sigma_ e
rho
26
39
.234
1.063
39
1.20
0
39
1.46
3
1.489
.290
3.816***
.741
.153
.943
-.181
1.921
*
-.209
1.29
8
Table 6: Impact of economic freedom scores on post acquisition performance with deal characteristics and pre-acquisition performance as
control variables
This Table shows analysis using static random effects model for full sample. Values are coefficients and standard error in parenthesis, Dependent variable: Industry-adjusted
post-acquisition operating performance. *** Significant at 1%, ** Significant at 5%, * Significant at 10%.
Variable name
Constant
Sample size
Pre acquisition performance
Economic freedom difference
Acq. Economic freedom score
Tar. Economic freedom score
CBMA-EM
ADTE
AETD
t- value
Beta
t-value
Beta
t-value
Beta
t-value
Beta
t-value
DEAL CHARACTERSTICS
27
Beta
t-value
Beta
t-value
Beta
t-value
Beta
t-value
Beta
t-value
Beta
t-value
Year effect
Country effect
R
R2
Adjusted R2
Wald chi2
sigma _
sigma_ e
rho
Table7: Impact of difference of {property rights, freedom from corruption, fiscal freedom, Gov.spending, business freedom, labour freedom,
monetary freedom, trade freedom, investment freedom, financial freedom}on post acquisition performance with deal characteristics and preacquisition performance as control variables involving emerging markets
This Table shows analysis using static random effects model for full sample. Values are coefficients and standard error in parenthesis, Dependent variable: Industry-adjusted
post-acquisition operating performance. *** Significant at 1%, ** Significant at 5%, * Significant at 10%.
Variable name
Constant
Sample size
Pre acquisition performance
t- value
Beta
t-value
Beta
t-value
M1
M2
M3
M4
M5
M6
M7
M8
M9
M10
M11
-1.619
161
.320
4.675***
-2.015**
161
.371
5.569***
-1.399
161
.320
4.587***
-1.371
161
.336
4.847***
-1.982**
161
.331
4.879***
-2.431**
69
.248
2.292**
-1.264
161
.322
4.448***
-1.763**
161
.307
4.331***
-1.356
161
.293
4.183***
-1.550
161
.283
4.070***
-2.086*
161
.300
4.293*
.337
-.044
5.020***
-.225
28
Freedom from
difference
corruption
score
Beta
.371
.074
t-value
5.569***
.322
Beta
-.296
t-value
-4.381***
-.261
-2.287*
Beta
-.298
t-value
-4.421***
Beta
Business freedom score difference
.010
.078
.345
t-value
Beta
freedom
score
.275
5.205***
t-value
1.922*
.321
3.044**
Beta
.213
t-value
2.984**
Beta
Trade freedom score difference
Investment
difference
Financial
difference
freedom
score
-.081
-.918
.281
t-value
Beta
t-value
Freedom
score
-.108
4.049***
-1.007
.313
.047
4.655***
.431
Beta
t-value
Beta
.155
5.020***
t-value
Beta
4.675***
t-value
Beta
t-value
Beta
t-value
Beta
t-value
Beta
-.901
-.065
-.981
-.094
-1.369
.193
Related merger
Mode of acquisition Tender offer
Target ratio
.157
-.063
.346
.116
5.096***
.867
.161
2.287**
.143
.144
.183
.284
.154
.186
.174
.162
.197
1.956**
1.983**
2.576**
2.444**
2.049**
2.543**
2.414**
2.277**
1.952*
.177
2.439**
.147
1.969**
.146
.189
.261
.159
.186
.133
.176
.230
1.968*
2.568**
2.363**
2.045**
2.423**
1.808*
2.386*
2.362*
-.120
-1.734*
-.040
-.595
-.085
-1.217
.231
-.113
-.061
-.021
-.095
-.080
-.066
-.071
-.044
-1.625
-.061
-.908
-.059
-.837
.201
-.883
-.085
-1.300
-.123
-1.786 *
.236
-.201
-.173
-1.689*
-.154
-1.485
.354
-1.314
-.085
-1.226
-.091
-1.263
.206
-1.127
-0.068
-1.001
-.136
-1.906*
.234
-.935
-.109
-1.633
-.121
-1.736*
.246
-1.033
-.062
-.944
-.138
-1.992*
.194
-.485
-.122
-1.387
.049
-.520
.382
-.050
-.730
-.058
-.890
-.119
-1.747
.198
29
t-value
2.813***
2.944**
3.338**
2.898**
3.481**
3.020**
2.872**
3.352**
3.576**
2.845**
3.896*
Year effect
Country effect
R
R2
Adjusted R2
Wald chi2
sigma _
sigma_ e
rho
Table 8: Impact of difference of {property rights, freedom from corruption, fiscal freedom, Gov.spending, business freedom, labour freedom,
monetary freedom, trade freedom, investment freedom, financial freedom }on post acquisition performance with deal characteristics and preacquisition performance as control variables involving Acquirer from Emerging market and Target from Developed market (AETD)
This Table shows analysis using static random effects model for full sample. Values are coefficients and standard error in parenthesis, Dependent variable: Industry-adjusted
post-acquisition operating performance. *** Significant at 1%, ** Significant at 5%, * Significant at 10%.
Variable name
Constant
Sample size
Pre acquisition performance
Property rights score difference
Freedom
from
corruption
score
difference
Fiscal freedom score difference
t- value
Beta
t-value
Beta
t-value
Beta
t-value
Beta
t-value
M1
M2
M3
M4
M5
M6
M7
M8
M9
M10
M11
-.719
39
.218
1.371
.364
2.019*
-.485
39
.208
1.319
-.706
39
.250
1.503
-.696
39
.243
1.443
-.480
39
.206
1.303
-.033
20
.202
.635
-.602
39
.228
1.318
-.624
39
.206
1.222
-.206
39
.168
1.010
-.372
39
.186
1.065
.566
39
.196
1.032
.187
.475
.196
.411
.036
.386
2.150**
.064
.338
Beta
-.013
30
0.092
.088
t-value
Beta
t-value
Beta
t-value
Beta
t-value
Beta
t-value
Beta
t-value
Beta
t-value
-.068
.247
.832
.070
.417
.182
1.116
.366
1.724*
DEAL
Mode of payment - Cash
Beta
.201
1.084
t-value
Beta
.514
t-value
Beta
t-value
Beta
t-value
Beta
t-value
Beta
t-value
.337
-.134
-.758
-.473
-2.652**
-.081
-.457
Related merger
Mode of acquisition Tender offer
Target ratio
.178
1.023
.235
.146
.383
--.039
.145
.024
.083
.168
.540
-.145
-.488
.363
2.162**
.089
.063
CHARACTERSTICS
.253
1.352
.168
.161
.264
-.178
.167
.206
.231
.231
.264
.854
.816
1.402
-.457
.853
1.051
1.205
1.132
1.170
.108
.633
.159
.841
.182
.129
.219
.182
.185
.047
.181
-.013
.994
.766
.722
1.018
1.055
.250
1.028
-.053
.140
.696
-.136
-.776
-.460
-2.612**
.024
.140
-.085
-.462
-.045
-.233
-.420
-2.239**
.051
.283
-.086
.061
-.082
-.070
-.044
.005
-.059
.189
-.467
-.020
-.110
-.419
-2.207**
.034
.177
.334
-.129
-.740
-.435
-2.486**
.114
.677
-.276
-.135
-.406
-.181
-.488
.154
.439
-.375
-.016
-.090
.182
-2.278**
023
.129
-.241
-.038
-.215
-.426
-2.310**
.039
.226
.027
-.126
-.697
-.424
-2.366**
.215
1.086
-.325
-.038
-.213
-.459
-2.436**
.085
.473
.734
-.233
-.985
-.465
-2.257*
.053
.199
Year effect
Country effect
R
R2
Adjusted R2
Wald chi2
sigma _
sigma_ e
rho
31
32
Table 9: Impact of Target {property rights, freedom from corruption, fiscal freedom, Gov.spending, business freedom, labour freedom,
monetary freedom, trade freedom, investment freedom, financial freedom } score on post acquisition performance with deal characteristics and
pre-acquisition performance as control variables involving Acquirer from Emerging market and Target from Developed market (AETD)
This Table shows analysis using static random effects model for full sample. Values are coefficients and standard error in parenthesis, Dependent variable: Industry-adjusted
post-acquisition operating performance. *** Significant at 1%, ** Significant at 5%, * Significant at 10%.
Variable name
Constant
Sample size
Pre acquisition performance
Target Property rights score
Target Freedom from corruption
score
Target Fiscal freedom score
t- value
Beta
t-value
Beta
t-value
Beta
t-value
Beta
M1
M2
M3
M4
M5
M6
M7
M8
M9
M10
M11
1.324
39
.242
1.500
-.273
-.1670
.297
39
.252
1.522
-.481
39
.230
1.384
-.210
39
.241
1.441
1.525
39
.226
1.428
.604
20
.249
.678
-.961
39
.273
1.603
1.248
39
.191
1.145
.465
39
.195
-.986
-.484
39
.186
1.065
.566
39
.196
1.032
-.560
-1.227
.362
.735
-.277
-.128
-.686
-.209
t-value
Target Gov. spending score
Target Business freedom score
Target Labour freedom score
Target Monetary freedom score
Target Trade freedom score
Target Investment freedom score
Target Financial Freedom score
-1.103
Beta
t-value
Beta
t-value
Beta
t-value
Beta
t-value
Beta
t-value
Beta
t-value
Beta
t-value
Beta
.166
.240
-.384
2.007**
.249
.876
.166
.863
-.272
-1.466
.366
1.724*
DEAL
Mode of payment - Cash
.023
.138
-.586
-.058
-.133
-.120
-.303
--.267
.883
.112
.323
.180
-.733
-.074
-.305
-.160
-.811
.165
.256
.189
33
CHARACTERSTICS
.165
.250
-.184
.153
.217
.176
t-value
Beta
.879
.756
t-value
Beta
t-value
Beta
t-value
Beta
t-value
Beta
t-value
-.120
-.058
-.336
-.450
-2.489**
-.047
-.263
Related merger
Mode of acquisition Tender offer
Target ratio
.131
-.022
1.519
1.384
.850
1.319
-.479
.787
1.124
.908
.836
1.135
.143
.769
.189
.974
.106
.104
.193
.217
.121
.110
.175
.048
.535
.602
.663
1.190
.680
.577
.966
.179
.143
.769
-.059
-.317
-.427
-2.285**
-.003
-.016
-.032
-.171
-.089
-.477
-.441
-2.380**
.091
.505
-.085
.081
-.073
-.059
-.051
-.105
-.081
.091
-.472
-.051
-.283
-.443
-2.357**
.056
.314
.424
-.234
-1.178
-.404
-2.284*
.082
.487
-.244
-.143
-.430
-.162
-.445
.176
.497
-.320
-.018
-.100
.362
-1.829*
.036
.205
.257
-.085
-.475
-.465
-2.527**
.095
.540
-.583
-.045
-.252
-.384
-2.036**
-.127
-.986
-.429
-.021
-.118
-.424
-2.243**
.023
.138
.384
-.142
-.613
-.353
-1.672
.130
.577
Year effect
Country effect
R
R2
Adjusted R2
Wald chi2
sigma _
sigma_ e
rho
34
Table 10: Impact of Target {property rights, freedom from corruption, fiscal freedom, Gov.spending, business freedom, labour freedom,
monetary freedom, trade freedom, investment freedom, financial freedom } score on post acquisition performance with deal characteristics and
pre-acquisition performance as control variables involving Acquirer from Developed market and Target from Emerging market (ADTE)
This Table shows analysis using static random effects model for full sample. Values are coefficients and standard error in parenthesis, Dependent variable: Industry-adjusted
post-acquisition operating performance. *** Significant at 1%, ** Significant at 5%, * Significant at 10%.
Variable name
Constant
Sample size
Pre acquisition performance
Target Property rights score
Target Freedom from corruption
score
Target Fiscal freedom score
t- value
Beta
t-value
Beta
t-value
Beta
t-value
Beta
M1
M2
M3
M4
M5
M6
M7
M8
M9
M10
M11
-.172
111
.437
5.012***
-.172
-2.190**
-.021
111
.392
4.411***
-2.269
111
.452
5.126***
-1.653
111
.448
5.022***
.857
111
.413
4.781***
.1.379
47
.326
2.669
-1.076
111
.448
4.954***
-1.430
111
.446
4.935***
-.306
111
.444
5.097***
-1.062
111
.440
4.927***
-5.84
111
.426
4.666*
-.004
-.036
-1.21
-.951
-.064
-.210
-2.508**
.133
t-value
Target Gov. spending score
Target Business freedom score
Target Labour freedom score
Target Monetary freedom score
Target Trade freedom score
Target Investment freedom score
Target Financial Freedom score
.1691*
Beta
t-value
Beta
t-value
Beta
t-value
Beta
t-value
Beta
t-value
Beta
t-value
Beta
t-value
-0.51
-.609
.661
-.021
-.208
-.232
-1.948*
--.088
.903
.084
.843
-.083
-.593
.140
1.048
.061
-.756
-.235
-2.899**
-.069
.634
.025
.305
-.272
-1.466
-.178
-2.210**
DEAL
Mode of payment - Cash
Beta
.204
2.355**
t-value
Beta
.137
.184
2.121**
.188
CHARACTERSTICS
.217
.218
.205
.375
.219
.216
.220
.210
.217
2.489**
2.466**
2.407**
3.117**
2.458**
2.442**
2.541**
2.367**
2.448*
.127
.137
.198
.288
.127
.128
.159
.145
.171
35
t-value
Beta
1.538
t-value
Beta
t-value
Beta
t-value
Beta
t-value
-.326
.013
.167
-.024
-.283
.225
2.666**
-.026
2.057**
-.056
-.685
.019
.238
-.075
-.896
.241
2.845**
1.413
1.500
2.185**
2.459**
1.383
1.373
1.761
1.542
1.780*
-.023
-.281
.006
-.075
-.047
-.554
.209
2.457**
-.020
-.015
.034
-.016
-.020
-.008
-.081
-.042
-.241
.018
.219
-.044
-.514
.195
2.232**
-.187
-.017
-.213
-.075
-.904
.251
2.980**
-.317
-.109
-1.015
.002
.019
.427
3.527**
-.198
.020
.241
.042
-.495
.208
2.417**
-.236
.016
.199
-.037
-.425
.206
2.367**
-.094
-.014
-.174
-.061
-.733
.237
2.786**
-.015
.013
.164
-.051
-.592
.205
2.379**
-.497
--.010
-.115
-.063
-.692
.285
3.069*
Year effect
Country effect
R
R2
Adjusted R2
Wald chi2
sigma _
sigma_ e
rho
36