STATISTICS

Table 1. Means, standard deviations, and correlations

Variable Mean S.D. 1 2 3 4 5 6 7 8 9 10 11

1. ROA 4.44 6.90

2. ROE 7.78 13.44 0.88
3. Firm size 14.15 1.72 0.08 0.24
4. GDP growth rate 0.38 0.49 −0.09 −0.04 −0.04
5. World competitiveness 1.75 2.19 −0.02 0.01 −0.01 0.29 ranking

6. Sales growth 6.58 28.04 0.15 0.17 0.09 0.03 0.16

7. Product diversification 1.19 0.35 −0.14 −0.27 −0.20 0.23 0.06 −0.03
8. Change in product 0.14 0.21 0.15 0.13 −0.01 0.01 0.44 0.21 0.15
diversification
9. Related acquisitions 2.04 6.82 −0.06 −0.08 0.15 0.03 −0.06 −0.01 0.01 −0.15
10. Number of 0.18 0.49 0.10 0.12 0.33 0.07 −0.04 0.08 0.09 −0.09 0.29
acquisitions
11. Size of acquisitions 3.19 27.22 −0.26 −0.16 −0.08 −0.07 0.04 −0.07 0.04 −0.02 0.02 0.11
12. Organizational slack −0.00 0.43 0.25 0.10 −0.15 −0.18 0.03 0.01 0.05 −0.01 0.05 −0.00 0.02

N = 234. Correlations larger than +0.13 or smaller than −0.13 are statistically significant at the 0.05 level.
Copyright 2009 John Wiley & Sons, Ltd. Strat. Mgmt. J., 30: 791–801 (2009)
Table 2. Main results using random-effects models

ROA ROE ROA ROE ROA ROE ROA ROE ROA ROE
Model Model Model Model Model Model Model Model Model Model
1 2 3 4 5 6 7 8 9 10
Variable Number of acquisitions Size of acquisitions

Constant 1.97 −2.42 −6.01 −15.59 −1.70 −5.44 0.24 −5.14 5.09 −3.37
(5.69) (10.53) (6.09) (11.63) (6.01) (11.40) (5.56) (11.13) (5.28) (10.76)
Firm size 0.59 1.63∗ 0.79∗ 1.97∗∗ 0.61 1.56∗ 0.56+ 1.65∗ 0.20 0.97
(0.38) (0.71) (0.38) (0.73) (0.37) (0.71) (0.33) (0.66) (0.32) (0.65)
Country −1.70 −1.78 0.76 1.95 0.00 −0.01 0.50 1.75 −0.37 0.10
(1.52) (2.83) (1.61) (3.09) (1.58) (2.98) (1.50) (2.98) (1.40) (2.81)
GDP growth rate −0.40∗ −0.68+ −0.92∗∗ −1.66∗∗ −0.80∗∗ −1.38∗∗ −0.60∗ −1.18∗ −0.46+ −0.93+
(0.18) (0.35) (0.28) (0.55) (0.28) (0.52) (0.28) (0.55) (0.25) (0.49)
World competitiveness
ranking −0.32+ −0.71∗ 0.06 −0.15 −0.14 −0.65 −0.03 −0.31 −0.13 −0.49
(0.17) (0.33) (0.22) (0.42) (0.22) (0.40) (0.21) (0.41) (0.19) (0.37)
Sales growth 0.02+ 0.05+ 0.02 0.04 0.01 0.02 0.01 0.03 0.02 0.05+
(0.01) (0.03) (0.01) (0.02) (0.01) (0.02) (0.01) (0.02) (0.01) (0.03)
Product diversification −2.65+ −6.75∗ −1.25 −4.18 −1.67 −5.01+ −2.04 −5.78+ −1.86 −5.01+
(1.49) (2.82) (1.66) (3.18) (1.62) (3.02) (1.56) (3.12) (1.46) (2.95)
Change in product 4.32∗ 5.91 −1.07 −3.65 −0.32 −2.20 0.18 −0.83 0.89 0.17
diversification (2.09) (4.06) (3.00) (5.78) (2.92) (5.45) (2.97) (5.83) (2.69) (5.29)
Related acquisitions −0.02 −0.19+ −0.02 −0.17 −0.03 −0.20∗ −0.03 −0.19+ −0.01 −0.16+
(0.06) (0.11) (0.05) (0.10) (0.05) (0.10) (0.05) (0.10) (0.05) (0.09)
Pre-jolt dummy 6.20∗∗ 10.80∗∗ 3.95+ 6.75 3.01 4.70 1.25 0.64
(2.13) (4.12) (2.24) (4.16) (2.18) (4.25) (2.19) (4.23)
Post-jolt dummy 1.37 2.69 1.19 2.22 −0.39 −0.87 −0.25 −0.48
(1.25) (2.42) (1.22) (2.26) (1.29) (2.51) (1.16) (2.26)
Number/size of acquisitions 4.60∗∗ 8.48∗∗ 3.47∗ 5.44∗ 0.45∗∗ 1.08∗∗∗ 0.35∗∗ 0.84∗∗
(1.69) (3.25) (1.68) (3.12) (0.16) (0.32) (0.15) (0.29)
Number/size of acquisitions
X −0.84 −1.54 −5.56 −4.45 −0.41∗∗ −1.00∗∗∗ −0.69∗ −1.84∗∗
pre-jolt dummy (2.37) (4.57) (5.73) (10.67) (1.66) (0.32) (0.34) (0.67)
Table 2. (Continued )

ROA ROE ROA ROE ROA ROE ROA ROE ROA ROE
Model Model Model Model Model Model Model Model Model Model
1 2 3 4 5 6 7 8 9 10
Variable Number of acquisitions Size of acquisitions
Number/size of
acquisitions X −5.11∗∗∗ −9.73∗∗ −2.76+ −3.76 −0.52∗∗∗ −1.14∗∗∗ −0.42∗∗ −0.91∗∗∗
post-jolt dummy (1.64) (3.17) (1.78) (3.31) (0.16) (0.32) (0.15) (0.29)
Organizational slack 8.88∗∗∗ 18.15∗∗∗ 7.60∗∗ 15.07∗∗ 9.86∗∗∗ 18.85∗∗∗ 13.42∗∗∗ 25.61∗∗∗
(2.76) (5.30) (2.68) (5.03) (2.62) (5.18) (2.50) (4.95)
Organizational slack X
pre-jolt −4.09+ −12.93∗∗ −10.28∗ −19.32∗ −5.03∗ −14.03∗∗ −7.04∗ −15.45∗
dummy (2.79) (5.38) (6.00) (11.16) (2.79) (5.45) (3.64) (7.13)
Organizational slack X −5.73∗ −14.12∗∗ −5.14∗ −12.76∗∗ −6.69∗∗ −14.87∗∗ −7.37∗∗ −16.73∗∗∗
post-jolt dummy (2.58) (4.97) (2.50) (4.66) (2.53) (4.96) (2.54) (4.97)
Number/size of
acquisitions X 16.15∗∗∗ 40.97∗∗∗ 2.87∗∗∗ 5.51∗∗∗
Organizational slack (4.40) (8.22) (0.53) (1.01)
Number/size of
acquisitions X −53.71∗ −82.85+ −1.79∗ −2.61+
slack X pre-jolt
dummy (30.83) (57.35) (1.01) (1.98)
Number/size of
acquisitions X −18.21∗∗∗ −45.77∗∗∗ −1.63∗∗ −3.33∗∗
slack X post-jolt
dummy (4.58) (8.52) (0.59) (1.15)
Industry class
dummies Included Included Included Included Included Included Included Included Included Included
R2 (within) 0.15 0.16 0.30 0.32 0.37 0.43 0.31 0.30 0.46 0.46
R2 (between) 0.12 0.21 0.24 0.28 0.27 0.31 0.37 0.34 0.46 0.38
R2 (overall) 0.13 0.19 0.26 0.29 0.31 0.36 0.34 0.32 0.45 0.41
Wald χ 2 35.66∗∗∗ 48.29∗∗∗ 84.01∗∗∗ 93.33∗∗∗ 108.86∗∗∗ 137.60∗∗∗ 105.58∗∗∗ 98.42∗∗∗ 172.62∗∗∗ 160.90∗∗∗
N = 234. Standard errors are reported in brackets. Two-tailed tests for control variables; one-tailed tests for hypothesized variables.
+ p < 0.10; ∗ p < 0.05; ∗∗ p < 0.01; ∗∗∗ p < 0.001.