| Variables | Definition |
| Frequency of merger | =1, if frequency of merger is 1 - 4 =0, if frequency of merger >5 |
| Domestic merger | =1, if the merging banks are from the same country =0, otherwise |
| Transaction value | Log(transaction value) |
| Relative size | Target total assets/Acquirer total assets |
| ROA | Net income/Average total assets |
| Efficiency | Total costs/Net income |
| Loan ratio | Net loans/Total assets |
| Risk | Loan loss provisions/Net interest revenues |
| Capital ratio | Total capital/Total assets |
| Deposit ratio | Total deposit/Total capital |
| Assets growth | (Total assets at t − total assets at t − 1)/Total assets at t − 1 |
| Downturn | =1, if the merger happened in 1997 and 1998 =0, otherwise |