Mars-Venus Marriages: Culture and Cross-Border M&A

Annoucement Period Abnormal Return in event window [-1,+1] (AR_0101)
Model 1 Model 2 Model 3 Model 4 Model 5 Model 6 Model 7
Independent Variable coeff t-stat coeff t-stat coeff t-stat coeff t-stat coeff t-stat coeff t-stat coeff t-stat
Intercept 0.026 0.71 0.001 0.03 0.001 0.03 0.075 *** 2.51 0.000 0.00 -0.007 -0.19 0.029 1.12
Friendly_Dummy -0.002 -0.06 0.003 0.11 0.002 0.09 0.002 0.08 0.001 0.05 0.001 0.05 0.001 0.04
Tender_Dummy -0.002 -0.36 -0.001 -0.22 -0.001 -0.18 0.000 0.06 0.000 0.07 0.000 0.08 0.000 0.08
Cash_Dummy -0.002 -0.32 -0.002 -0.31 -0.001 -0.13 -0.001 -0.10 -0.001 -0.23 0.000 -0.08 0.000 -0.06
No_of_Bidders 0.007 0.65 0.003 0.22 0.003 0.25 0.007 0.52 0.004 0.34 0.005 0.42 0.005 0.42
Log (Acquiror MV) 0.121 1.19 0.161 0.17 0.170 0.22 0.120 0.34 0.127 0.49 0.122 0.20 0.133 0.78
Openness_Target 0.000 0.14 0.000 -0.12 0.000 0.04 0.000 0.42 0.000 0.20 0.000 -0.02
PCI_diff -0.002 -0.36 -0.003 -0.52 -0.001 -0.28 0.001 0.14 0.000 -0.05 0.001 0.17
Forex_Volatility 0.001 0.54 0.001 0.32 0.002 0.74 0.001 0.38 0.002 0.85 0.003 1.27
Log (Bilateral Trade) 0.002 1.12 0.001 1.34 0.003 1.45 0.002 1.51 0.001 0.88 0.001 1.01
Corp_Gov_Diff 0.002 0.99 0.000 0.21 0.002 0.79 0.000 0.23 0.001 0.27
Log (Hofstede Dist) -0.010 ** -2.40
Religion_Dummy 0.000 0.03
Language_Dummy 0.012 ** 2.21
Legal_Dummy 0.011 ** 2.06
Target Country Fixed Effects YES YES YES YES YES YES YES
Year Fixed Effects YES YES YES YES YES YES YES
R2 (%) 5.9 5.8 5.9 6.2 6.1 6.3 6.3
Durbin-Watson Statistic 1.96 2.01 2.01 1.92 1.99 1.96 2.01
Number of Observations 828 778 776 761 763 763 760
t-statistics with robust standard errors are stated in parentheses
*** Significant at the 1% level
** Significant at the 5% level
*Significant at the 10% level
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