100 Executive Stock Options, Corporate Cash Holdings and M&A Decisions Panel B: Firms in New Economy Dep: CAR(-2,+2) (1) (2) (3) (4) Full Sample All-Cash Deals Within Industry Sample Within Industry & All-Cash Deals Vegat-1 Deltat-1 Cashricht-1 Vega×Cashrich Delta×Cashrich Cash/TAt-1 0.0746* (1.95) 0.00264 (0.46) 0.00936 (0.68) -0.0754* (-1.75) 0.00257 (0.36) -0.0620*** 0.107** (2.10) 0.00782 (1.14) 0.0132 (0.70) -0.0766 (-1.40) 0.0104 (1.18) -0.0515 0.0924** (1.99) 0.00807 (1.17) 0.0132 (0.75) -0.114* (-1.94) 0.00741 (0.80) -0.0432 0.121* (1.76) 0.00990 (1.08) 0.0127 (0.52) -0.0878 (-1.31) 0.00503 (0.42) -0.0458 Controls Year fixed effect Number of observations R-squared Yes Yes 394 0.148 Yes Yes 190 0.312 Yes Yes 254 0.171 Yes Yes 120 0.403 Note: This table examines whether the market responds differently to ESOs-induced M&A decisions conducted by firms in different industry economies. All variables are defined in the same way as shown in the Appendix. Panel A exhibits the results for firms in the old economy while panel B shows the results for new-economy firms. The results are estimated based on the OLS regression model with standard errors that are robust and control for time and firm clustering. The t-statistics are reported in parentheses. ***, **, and * denote significance at the 1%, 5%, and 10% levels, respectively. Table 6 Announcement Effect of M&As for Firms in the Old and New Economy (cont.)
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