Hello everyone,
I am writing my Master Thesis and doing research on the influence of Independency Indicators of acquiring firm on their short-term stock return before and after an m&a event.
These indicators are noted by categorical values (A, B, C, D) and I have taken them as dummies into my regression. To also research my moderator of total assets I have made interaction terms between these dummies and total assets to look into the effect of this moderating variable. Below is the regression that I ran. Could someone please tell me whether I did the regression correctly for the above indicators and moderators?
Would mean a lot if I could get some help on this.
I am writing my Master Thesis and doing research on the influence of Independency Indicators of acquiring firm on their short-term stock return before and after an m&a event.
These indicators are noted by categorical values (A, B, C, D) and I have taken them as dummies into my regression. To also research my moderator of total assets I have made interaction terms between these dummies and total assets to look into the effect of this moderating variable. Below is the regression that I ran. Could someone please tell me whether I did the regression correctly for the above indicators and moderators?
Would mean a lot if I could get some help on this.
| (-10,10) | (-5,5) | (-1,1) | |
| VARIABLES | CAR | CAR | CAR |
| Ownership Concentration | -0.000603 | 0.000953 | 0.000292 |
| (0.00148) | (0.000800) | (0.000500) | |
| Director Independency Indicator A | - | - | - |
| Director Independency Indicator Amin | 0.363*** | 0.152*** | 0.0170 |
| (0.0511) | (0.0546) | (0.0571) | |
| Director Independency Indicator B | - | - | - |
| Director Independency Indicator Bmin | 0.378*** | 0.272*** | 0.0186 |
| (0.0408) | (0.0294) | (0.0191) | |
| Director Independency Indicator D | 2.792 | 1.730 | 0.354 |
| (2.237) | (1.343) | (0.283) | |
| Acquirer Total Assets | -0.0619*** | -0.0593*** | -0.0586*** |
| (0.0185) | (0.0124) | (0.00582) | |
| Predeal Acquirer Market Cap | -0.00498* | -0.00499** | -0.00670*** |
| (0.00288) | (0.00238) | (0.00190) | |
| Method of Payment in Bonds | -0.0335 | 0.0836*** | 0.0383* |
| (0.0279) | (0.0230) | (0.0224) | |
| Method of Payment in Business Assets | -0.0758*** | - | - |
| (0.00924) | |||
| Method of Payment in Cash | 0.00324 | 0.105*** | 0.0491*** |
| (0.00637) | (0.00588) | (0.00419) | |
| Method of Payment in Cash Reserves | -0.0131 | 0.103*** | 0.0459*** |
| (0.0135) | (0.00996) | (0.00643) | |
| Method of Payment in Cash Assumed | 0.00416 | 0.109*** | 0.0570*** |
| (0.0180) | (0.0164) | (0.0105) | |
| Method of Payment in Converted Debt | -1.107 | -0.578 | -0.104 |
| (0.707) | (0.391) | (0.0752) | |
| Method of Payment in Deferred Payment | -0.00435 | 0.0940*** | 0.0366*** |
| (0.0203) | (0.0157) | (0.0106) | |
| Method of Payment in Earn Out | -0.00162 | 0.0987*** | 0.0393*** |
| (0.00800) | (0.00708) | (0.00491) | |
| Method of Payment in Liabilities | -0.00293 | 0.0999*** | 0.0485*** |
| (0.00768) | (0.00696) | (0.00521) | |
| Method of Payment in Other | -0.0527 | 0.0439 | 0.0201 |
| (0.0832) | (0.0499) | (0.0321) | |
| Method of Payment in Services | - | 0.0758** | 0.00936 |
| (0.0300) | (0.0275) | ||
| Method of Payment in Shares | 0.0100 | 0.109*** | 0.0430*** |
| (0.0104) | (0.00875) | (0.00622) | |
| Ownership Concentration x Total Assets | 9.38e-05 | -7.81e-05 | -1.05e-05 |
| (0.000180) | (9.76e-05) | (6.00e-05) | |
| Indicator A x Total Assets | 0.0233*** | 0.0589*** | 0.0419*** |
| (0.00627) | (0.00672) | (0.00352) | |
| Indicator Aplus x Total Assets | 0.0486*** | 0.0635*** | 0.0586*** |
| (0.00586) | (0.00765) | (0.00365) | |
| Indicator Amin x Total Assets | -0.0841*** | 0.0102 | 0.0567*** |
| (0.0169) | (0.0143) | (0.0141) | |
| Indicator B x Total Assets | - | 0.00540 | - |
| (0.00965) | |||
| Indicator Bplus x Total Assets | 0.0497*** | 0.0649*** | 0.0585*** |
| (0.00601) | (0.00766) | (0.00371) | |
| Indicator Bmin x Total Assets | -0.0506*** | - | 0.0593*** |
| (0.0132) | (0.00652) | ||
| Indicator D x Total Assets | -0.195 | -0.0857 | 0.0279 |
| (0.203) | (0.123) | (0.0264) | |
| Constant | 0.152 | -0.106 | 0.00853 |
| (0.149) | (0.0767) | (0.0467) | |
| Observations | 1,730 | 1,730 | 1,730 |
| R-squared | 0.122 | 0.092 | 0.054 |
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