1. Acquisition price divided by acquirer total assets in year prior to acquisition effective date. . 𝑮𝑮𝑷𝑷𝑮𝑮𝑷𝑷𝑮𝑮𝑺𝑺𝒅𝒅 𝒊𝒊 : Dummy variable 1 = target and acquirer have same Fama-French 12-Industry classification, else 0. 𝑮𝑮𝑷𝑷𝒕𝒕𝑷𝑷𝑷𝑷𝑷𝑷𝑷𝑷𝒕𝒕𝑷𝑷𝑺𝑺𝑷𝑷𝑺𝑺𝒕𝒕𝑷𝑷𝑷𝑷𝑷𝑷 𝒊𝒊 : Annual segment asset turnover using Compustat data for segment revenue / segment assets. 𝑮𝑮𝑷𝑷𝒕𝒕𝑷𝑷𝑷𝑷𝑷𝑷𝑷𝑷𝒕𝒕𝑷𝑷𝑺𝑺𝑷𝑷𝑺𝑺𝒕𝒕𝑷𝑷𝑷𝑷𝑷𝑷𝑷𝑷𝒕𝒕𝒕𝒕 𝒊𝒊 : Change in annual segment asset turnover. 𝑮𝑮𝑷𝑷𝒕𝒕𝑹𝑹𝑷𝑷𝑷𝑷 𝒊𝒊 : Annual segment revenue scaled by lagged acquirer assets. 𝑮𝑮𝑷𝑷𝒕𝒕𝑹𝑹𝑷𝑷𝑷𝑷𝑷𝑷𝒕𝒕𝒕𝒕 𝒊𝒊 : Change in annual segment revenue, not scaled prior to calculating. 𝑮𝑮𝒕𝒕𝒕𝒕𝑨𝑨𝑺𝑺𝑺𝑺𝑷𝑷𝑷𝑷𝑹𝑹 𝒊𝒊 : Dummy variable 1 = SDC identified stock as >= 15% of the consideration, else 0. 𝑷𝑷𝑷𝑷𝑷𝑷𝒕𝒕𝑷𝑷𝒕𝒕𝑹𝑹𝑷𝑷𝑷𝑷𝑷𝑷𝑷𝑷𝑷𝑷𝑺𝑺𝑷𝑷𝑷𝑷𝑹𝑹 𝒊𝒊 : Mean of target revenue as presented in the target's financial statements. If private target, 1, 2, or 3 years of financials are available and used. If public target, 3 years are used, scaled by lagged acquirer assets. 𝑮𝑮𝑮𝑮𝑮𝑮𝑮𝑮𝒑𝒑 𝒊𝒊 : Goodwill impairment dummy variable where 0 = not impaired; 1 = impaired. PrivTar: indicator variable = 1 if target was private, else 1 if target was public. 𝑷𝑷𝑷𝑷𝑷𝑷𝑷𝑷𝑷𝑷𝑷𝑷𝑷𝑷𝒕𝒕 𝒊𝒊 : Purchase Price Multiple of target total assets. Purchase price divided by the mean of target total assets as presented in the target's financial statements. If private target, 1, 2, or 3 years of financials are available and used. If public target, 3 years are used. 𝑷𝑷𝑷𝑷𝑷𝑷𝑷𝑷𝑮𝑮 𝒊𝒊 : Purchase Price Multiple of target net income. Purchase price divided by the mean of target total net income as presented in the target's financial statements. If private target, 1, 2, or 3 years of financials are available and used. If public target, 3 years are used. 𝑷𝑷𝑷𝑷𝑷𝑷𝑷𝑷𝑷𝑷𝑭𝑭 𝒊𝒊 : Purchase Price , 1, 2, or 3 years of financials are available and used. If public target, 3 years are used. 𝑮𝑮𝑮𝑮𝑷𝑷𝑨𝑨𝒕𝒕 𝒊𝒊 : Percent of acquisition price assigned to goodwill as identified in the purchase price allocation of the acquirer 10-K. 𝑷𝑷𝑨𝑨𝑨𝑨𝑷𝑷𝑷𝑷𝑷𝑷𝑷𝑷𝒕𝒕 𝒊𝒊 : Total assets of acquirer from Compustat. 𝑷𝑷𝑨𝑨𝑨𝑨𝑷𝑷𝑷𝑷𝑹𝑹 𝒊𝒊 : Goodwill Cumulative Abnormal Return of acquirer around window of announcement date;; K 𝑮𝑮𝑮𝑮𝑮𝑮𝑮𝑮𝒑𝒑;Total assets of acquirer from Compustat. 𝑷𝑷𝑨𝑨𝑨𝑨𝑷𝑷𝑷𝑷𝑹𝑹 𝒊𝒊 : Goodwill Cumulative Abnormal Return of acquirer around window of announcement date
2. Acquisition price divided by acquirer total assets in year prior to acquisition effective date 𝑮𝑮𝑷𝑷𝑮𝑮𝑷𝑷𝑮𝑮𝑺𝑺𝒅𝒅 𝒊𝒊 : Dummy variable 1 = target and acquirer have same Fama-French 12-Industry classification, else 0. 𝑮𝑮𝑷𝑷𝒕𝒕𝑷𝑷𝑷𝑷𝑷𝑷𝑷𝑷𝒕𝒕𝑷𝑷𝑺𝑺𝑷𝑷𝑺𝑺𝒕𝒕𝑷𝑷𝑷𝑷𝑷𝑷 𝒊𝒊 : Annual segment asset turnover using Compustat data for segment revenue / segment assets. 𝑮𝑮𝑷𝑷𝒕𝒕𝑷𝑷𝑷𝑷𝑷𝑷𝑷𝑷𝒕𝒕𝑷𝑷𝑺𝑺𝑷𝑷𝑺𝑺𝒕𝒕𝑷𝑷𝑷𝑷𝑷𝑷𝑷𝑷𝒕𝒕𝒕𝒕 𝒊𝒊 : Change in annual segment asset turnover. 𝑮𝑮𝑷𝑷𝒕𝒕𝑹𝑹𝑷𝑷𝑷𝑷 𝒊𝒊 : Annual segment revenue scaled by lagged acquirer assets. 𝑮𝑮𝑷𝑷𝒕𝒕𝑹𝑹𝑷𝑷𝑷𝑷𝑷𝑷𝒕𝒕𝒕𝒕 𝒊𝒊 : Change in annual segment revenue, not scaled prior to calculating. 𝑮𝑮𝒕𝒕𝒕𝒕𝑨𝑨𝑺𝑺𝑺𝑺𝑷𝑷𝑷𝑷𝑹𝑹 𝒊𝒊 : Dummy variable 1 = SDC identified stock as >= 15% of the consideration, else 0. 𝑷𝑷𝑷𝑷𝑷𝑷𝒕𝒕𝑷𝑷𝒕𝒕𝑹𝑹𝑷𝑷𝑷𝑷𝑷𝑷𝑷𝑷𝑷𝑷𝑺𝑺𝑷𝑷𝑷𝑷𝑹𝑹 𝒊𝒊 : Mean of target revenue as presented in the target's financial statements. If private target, 1, 2, or 3 years of financials are available and used. If public target, 3 years are used, scaled by lagged acquirer assets. 𝑮𝑮𝑮𝑮𝑮𝑮𝑮𝑮𝒑𝒑 𝒊𝒊 : Goodwill impairment dummy variable where 0 = not impaired; 1 = impaired. PrivTar: indicator variable = 1 if target was private, else 1 if target was public. 𝑷𝑷𝑷𝑷𝑷𝑷𝑮𝑮𝑺𝑺𝒕𝒕𝑷𝑷𝑺𝑺𝒕𝒕𝑷𝑷𝑷𝑷𝑷𝑷𝑷𝑷𝒕𝒕 𝒊𝒊 : Purchase Price Multiple using target separately identifiable intangible assets as recognized in the purchase price allocation of the 10-K business combination and/or intangible assets footnotes;𝑹𝑹𝑷𝑷𝑹𝑹𝑷𝑷𝒕𝒕𝒊𝒊𝑷𝑷𝑷𝑷𝑮𝑮𝒊𝒊𝑹𝑹𝑷𝑷 𝒊𝒊;The Quarterly Journal of Economics
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