101 NTU Management Review Vol. 31 No. 1 Apr. 2021 Table 7 Future Performance Effect Panel A: Industry-Adjusted ROA Panel B: Industry-Adjusted M/B (1) (2) (3) (1) (2) (3) Full Sample All-Cash Deals Within Industry Deals Full Sample All-Cash Deals Within Industry Deals Intercept IAROA t-1 IAM/B t-1 MA t Vega t-1 Delta t-1 Cashrich t-1 . Vega×Cashrich Delta×Cashrich Vega×Cashrich×MA Delta×Cashrich×MA Sales t-1 Aveleverage Avesalegrowth InsideOwn t-1 0.0358*** (4.42) 0.841*** (49.94) -0.0074*** (-2.78) 0.0328*** (3.66) 0.0034** (1.96) 0.0054** (2.07) -0.0113 (-0.84) -0.00154 (-0.60) 0.0603** (2.33) -0.0139** (-2.14) -0.00249** (-2.52) -0.00867 (-1.35) -0.0197** (-2.35) -0.0001 (-0.75) 0.0350*** (4.17) 0.845*** (50.60) -0.0069** (-2.00) 0.0267*** (3.18) 0.0024 (1.35) 0.0044 (1.64) -0.00733 (-0.57) -0.000622 (-0.24) 0.0570*** (2.69) -0.0056 (-1.28) -0.00227** (-2.29) -0.00999 (-1.51) -0.0183** (-2.09) -0.0002 (-0.97) 0.0353*** (4.20) 0.844*** (49.38) -0.0050 (-1.25) 0.0298*** (3.25) 0.0034* (1.91) 0.0047* (1.74) -0.00895 (-0.66) -0.00146 (-0.56) -0.00205 (-0.06) -0.00089 (-0.16) -0.0025** (-2.47) -0.00852 (-1.30) -0.0184** (-2.13) -0.0002 (-0.92) 0.264*** (2.85) 0.701*** (33.39) -0.123*** (-4.75) -0.0237 (-0.27) 0.0202 (0.90) 0.0821*** (3.27) -0.0864 (-0.59) -0.0134 (-0.37) -0.429 (-1.09) -0.000295 (-0.00) 0.0288*** (3.04) -0.358*** (-5.46) -0.350*** (-4.96) -0.00065 (-0.34) 0.237** (2.41) 0.706*** (32.88) -0.114*** (-3.06) -0.0424 (-0.45) 0.0213 (0.91) 0.0861*** (3.26) -0.0811 (-0.54) -0.0183 (-0.49) -0.498 (-1.23) 0.0697 (0.76) 0.0269*** (2.74) -0.353*** (-5.25) -0.358*** (-4.97) -0.00044 (-0.23) 0.252*** (2.95) 0.698*** (31.96) -0.106*** (-2.58) -0.0565 (-0.63) 0.0296 (1.29) 0.0929*** (3.53) -0.0645 (-0.44) -0.0254 (-0.69) -0.945 (-1.57) 0.0441 (0.57) 0.0271*** (2.77) -0.373*** (-5.52) -0.348*** (-4.85) -0.00059 (-0.32) Year fixed effect Number of observations R-squared Yes 6,585 0.686 Yes 6,132 0.687 Yes 6,156 0.686 Yes 6,584 0.585 Yes 6,131 0.588 Yes 6,155 0.584 Note: The table investigates the one-year performance for cash-rich firms undertaking the ESOs-induced M&As. The dependent variables are industry-adjusted profitability (Industry-adjusted ROA) and industry-adjusted market-to-book ratio (Industry-adjusted M/B). Independent and control variables are defined in the same way as shown in the Appendix. Panels A and B demonstrate the analyses base on different performance measures. The results are estimated by 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.
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