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Table 6 Variance Inflation Factors

From: Learning from your investors: can the geographical composition of institutional investors affect the chance of success in international M&A deals?

Variable VIF 1/VIF
Panel A: variance inflation factors of the independent variables used in the original model of post-acquisition performance   
Change in holdings of knowledge-intensive institutional investors with regional expertise (β H2) 2.7 0.371
Acquirer debt capacityt−1 3.29 0.304
Level of cash of acquirert−1 2.84 0.352
Acquirer market to book ratio 2.45 0.409
Deal type is tender offer 2.2 0.455
Target and acquirer industry relatedness 1.79 0.558
All-cash payment dummy 1.74 0.573
Initial reaction hostile 1.54 0.649
Deal value to market value 1.52 0.659
Differences in national laws and regulations (target anti-directors rights) 1.52 0.660
Acquirer share turnover 1.39 0.718
Mean VIF 2.09  
Panel B: variance inflation factors of the independent variables used in the model of post-acquisition performance with excluded collinear variables
Change in holdings of knowledge-intensive institutional investors with regional expertise (β H2) 1.31 0.764
Differences in national laws and regulations (target anti-directors rights) 1.42 0.706
Deal type is tender offer 1.41 0.712
Level of cash of acquirert−1 1.34 0.748
Acquirer debt capacityt−1 1.33 0.754
Acquirer share turnover 1.2 0.836
Target and acquirer industry relatedness 1.11 0.899
Mean VIF 1.3