Variables | Definition |
Dependent variable: Spread |
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Independent variables: |
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Attitude of the bid | Dummy variable that equals to “1” if the offer is a hostile offer, and “0” otherwise. |
Relative size |
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Payment method | Percentage of cash offered by the bidder for the target. |
Premium | Premium paid by the bidder based on the target’s stock price one day before the announcement. |
Termination fees |
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Control variables: Target performance
Target leverage
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