Deal value as reported by SDC Platinum (in millions) scaled by the acquiring market DEALRATIO firm’s value of equity Total deal value as reported by SDC Platinum (in millions) DEALVALUE Indicator variable equal to one if the deal was unsolicited or hostile and zero otherwise HOSTILE Indicator variable equal to one if there are multiple bidders for the target and zero MULTIBID otherwise Indicator variable equal to one if the acquiring firm used the pooling of interests accounting POOLING method in a tax-free exchange of stock and zero otherwise Indicator variable equal to one if the acquiring firm and target firm share the same 2-digit SAMEIND SIC and zero otherwise Indicator variable equal to one if the percentage of stock used in the transaction is greater STOCK than or equal to 50% and zero otherwise Target firm leverage defined as long-term debt divided by beginning of year total common tLEVERAGE equity (in millions) Target firm market-to-book ratio defined as market capitalization divided by beginning of tMTB year total common equity Target firm market value of equity computed as the number of common shares outstanding tMV (in millions) at year-end multiplied by price (dollars and cents) Target firm average revenue growth between year 0 and year -2, where year 0 is the year tREVENUE prior to the acquisition Target return on equity defined as net income before extraordinary items divided by tROE beginning of year total common equity
DEALRATIO Deal value as reported by SDC Platinum (in millions) scaled by the acquiring firm’s market value of equity DEALVALUE Total deal value as reported by SDC Platinum (in millions) HOSTILE Indicator variable equal to one if the deal was unsolicited or hostile and zero otherwise MULTIBID Indicator variable equal to one if there are multiple bidders for the target and zero otherwise POOLING Indicator variable equal to one if the acquiring firm used the pooling of interests accounting method in a tax-free exchange of stock and zero otherwise SAMEIND Indicator variable equal to one if the acquiring firm and target firm share the same 2-digit SIC and zero otherwise STOCK Indicator variable equal to one if the percentage of stock used in the transaction is greater than or equal to 50% and zero otherwise tLEVERAGE Target firm leverage defined as long-term debt divided by beginning of year total common equity (in millions) tMTB Target firm market-to-book ratio defined as market capitalization divided by beginning of year total common equity tMV Target firm market value of equity computed as the number of common shares outstanding (in millions) at year-end multiplied by price (dollars and cents) tREVENUE Target firm average revenue growth between year 0 and year -2, where year 0 is the year prior to the acquisition tROE Target return on equity defined as net income before extraordinary items divided by beginning of year total common equity
AcquirerNOL-May-5-2017%20Merged-1.docx