5. Multivariate Analysis
Firm size and the geographical distance of targets
This section tests Proposition 2 developed in the literature review. A
cross-sectional analysis has been performed. First, OLS regressions are
conducted, which include the constants in the models. Then, the constants
are omitted in the analysis, because the values of the constants are all
negative. As the dependent variable is the physical distance of either
domestic or cross-border M&As, the negative values cannot exist. The
results of the empirical tests are reported in without the constant
values in the models