Table 2.

Correlation matrix.

Variables		A	B	C	D	E	F	G	H	I	J	K	L	M	N	O	P	Q	R	S	T
M&A	A	1
Investment	B	0.002	1
Short-debt leverage	C	−0.006	−0.044	1
Long-debt leverage	D	−0.011	0.015	0.102	1
ROA	E	−0.009	0.025	−0.169	−0.044	1
ROE	F	−0.003	−0.104	−0.002	0.035	0.712	1
Dividend	G	−0.008	−0.020	0.083	0.126	0.039	0.066	1
Cash	H	0.029	0.018	−0.077	−0.163	0.109	0.054	−0.053	1
Managerial ability	I	−0.050	−0.009	0.119	0.253	0.060	0.113	0.113	−0.032	1
Size	J	−0.073	0.019	0.093	0.319	0.113	0.139	0.101	−0.051	0.083	1
Profitability	K	−0.015	0.033	−0.337	−0.119	0.323	0.152	−0.024	0.146	0.115	0.126	1
Duality	L	−0.000	0.015	−0.020	−0.091	0.028	0.009	−0.019	0.024	−0.158	−0.203	−0.024	1
Board	M	0.014	−0.009	−0.015	0.115	0.001	0.011	0.040	−0.008	0.207	0.286	0.075	−0.159	1
Independence	N	0.017	0.002	−0.003	0.118	0.002	0.016	0.034	−0.009	0.264	0.336	0.066	−0.113	0.719	1
Institutional	O	−0.021	0.008	0.003	0.188	0.074	0.071	−0.005	0.068	0.419	0.496	0.113	−0.214	0.247	0.250	1
Growth	P	−0.014	0.038	−0.058	0.003	0.166	0.128	0.027	0.015	0.047	0.037	0.282	0.023	0.003	0.001	0.038	1
Leverage	Q	−0.016	−0.052	0.600	0.448	−0.165	0.037	0.184	−0.195	0.363	0.390	−0.313	−0.095	0.093	0.124	0.147	−0.017	1
Cash flow	R	0.003	0.046	−0.165	−0.056	0.293	0.168	0.014	0.139	0.013	0.061	0.300	0.0019	0.037	0.040	0.083	0.079	−0.195	1
State	S	0.010	−0.028	0.039	0.169	−0.076	−0.020	0.030	0.001	0.338	0.378	0.044	−0.288	0.253	0.274	0.428	0.000	0.183	−0.068	1
MTB	T	0.128	−0.004	−0.060	−0.118	0.049	0.020	−0.043	0.121	−0.312	−0.395	0.0033	0.091	−0.134	−0.107	−0.057	0.032	−0.201	0.093	−0.160	1

Notes. This table reports Person correlation matrix. All variables are defined in Appendix. Bold values indicate significance at the 5% level.