APPENDIX 1: Selection procedures

(1)

APPENDIX 1: Selection procedures

Selected criteria

Specified values or options

Step results

Deal type

_{Merger and acquisition}

_245,690

Percentage of stake

_{Acquired stake min = 50%}

_243,278

Quoted companies

_{Quoted acquirer}

_186,248

Time period

_{Completed from 01/01/2005 to 31/12/2007}

_185,878

Deal value (including estimation) Min = 100 million euros

40,123

Firm location

Acquirer: Western Europe

_{Target: Western Europe}

(Cross-border deals)

12,984

Total number of deals selected

₁₁₃

APPENDIX 2: List of M&A deals in Western European Union

Acquirer name

Acquirer country

Announcement date

Completion date

OMV AG

AT

30-Jun-05

14-Oct-05

Telenor ASA

NO 23-May-05

7-Jul-05

Kühne & Nagel International

CH

17-Oct-05

31-Dec-05

(2)

Acquirer name

Acquirer country

Announcement date

Completion date

Telenor ASA

NO

23-May-05

8-Jul-05

Meda AB

SE

8-Aug-05

30-Sep-05

Diageo plc

GB

6-Jun-05

25-Aug-05

Centrica plc

GB

6-Jun-05

30-Jun-05

Johnston Press plc

GB

18-Sep-05

14-Dec-05

Abbot Group plc

GB

30-Jun-05

2-Aug-05

TeliaSonera AB

SE

6-Jul-05

7-Nov-05

Tele2 AB

SE

15-Jul-05

18-Jul-05

Hexagon AB

SE

15-Aug-05

17-Oct-05

Grupo Ferrovial SA

ES

22-Aug-05

10-Oct-05

Compagnie Générale de

Géophysique FR

29-Aug-05

Eniro AB

SE

11-Oct-05

1-Dec-05

Nobia AB

SE

1-Nov-05

Old Mutual PLC

GB

2-Sep-05

6-Jun-06

Grontmij NV

NL

12-Jul-06

30-Aug-06

AXA SA

FR

14-Jun-06

22-Dec-06

LogicaCMG plc

GB

21-Aug-06

27-Nov-06

SKF AB

SE

3-Apr-06

5-Jul-06

Norgani Hotels ASA

NO

8-Jun-06

31-Aug-06

Northgate plc

GB

5-Jul-05

30-Jun-06

Crucell NV

NL

1-Dec-05

22-Feb-06

Telenor ASA

NO

31-Oct-05

5-Jan-06

Telefonak LM Ericsson

SE

25-Oct-05

24-Jan-06

Telefónica SA

ES

31-Oct-05

7-Mar-06

National Express Group plc

GB

19-Oct-05

1-Jan-06

Merck KGaA

DE

14-Nov-05

2-Jan-06

Mecom Group plc

GB

17-Jan-06

Lonza Group AG

CH

16-Dec-05

8-Mar-06

(3)

Acquirer name

Acquirer country

Announcement date

Completion date

Mecom Group plc

GB

24-Feb-06

26-Apr-06

Trelleborg AB

SE

1-Feb-06

9-Mar-06

Ementor ASA

NO

8-Feb-06

29-Dec-06

Metso Oyj

FI

13-Feb-06

30-Mar-06

National Express Group plc

GB

13-Mar-06

7-Apr-06

Meda AB

SE

21-Apr-06

15-Jun-06

Kesa Electricals plc

GB

11-May-06

11-Aug-06

Camillo Eitzen & Co. ASA

NO

25-May-06

30-Sep-06

UBS AG

CH

1-May-06

Bakkavör Group HF

IS

16-May-06

TeliaSonera AB

SE

28-Jul-06

2-Oct-06

HK Ruokatalo Group Oyj

FI

23-May-06

4-Sep-06

Koninklijke Philips Electronics

NL

23-Jun-06

ARM Holdings plc

GB

26-Jun-06

11-Sep-06

Low & Bonar plc

GB

17-Jul-06

27-Sep-06

Fomento de Construcciones y

Contratas SA

ES 24-Jul-06

25-Sep-06

Wolseley plc

GB

13-Oct-06 14-Dec-06

Schweizerische Rückversicherungs

Gesellschaft

CH 21-Sep-06

7-Nov-06

DeepOcean ASA

NO

16-Oct-06 7-Dec-06

Oriel Resources plc

GB

17-Oct-06

17-Nov-06

(4)

Acquirer name

Acquirer country

Announcement date

Completion date

Eriks Group NV

NL

7-Dec-06

22-Feb-07

Liechtensteinische Landesbank

LI

2-Jan-07

16-Apr-07

Telenor ASA

NO

5-Mar-07

18-May-07

CRH plc

IE

12-Mar-07

15-May-07

Swisscom AG

CH

12-Mar-07

1-Oct-07

Svenska Cellulosa AB

SE

12-Mar-07

1-Oct-07

CRH plc

IE

16-Apr-07

Winterthur Technologie AG

CH

27-Jun-07

Mecom Group plc

GB

28-Aug-07

12-Nov-07

Straumur-Burðarás HF

IS

22-May-07

Scor SA

FR

12-Jun-07

26-Jul-07

Wienerberger AG

AT

15-Jun-07

31-Aug-07

Cardpoint plc

GB

28-Sep-07

5-Dec-07

Storebrand ASA

NO

3-Sep-07

21-Dec-07

Tandberg ASA

NO

6-Sep-07

24-Sep-07

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APPENDIX 3: REGRESSION RESULTS

Appendix 3.1: Cash compensation change; Annual sales change, ROE change

Model Summary Model R R Square Adjusted R Square Std. Error of the Estimate 1 _.139(a) _.019 _.003 _5.00200976

a Predictors: (Constant), Native country, ROE change, Quality of mergers, Annual sales change

ANOVA(b)

Model

Sum of

Squares df Mean Square F Sig.

Regression _115.451 ₄ _28.863 _1.154 _.332(a)

Residual 5829.684 233 25.020

1

Total 5945.135 237

a Predictors: (Constant), Native country, ROE change, Quality of mergers, Annual sales change b Dependent Variable: Cash executive compensation change

Coefficients(a)

Unstandardized Coefficients

Standardized Coefficients

Model B Std. Error Beta t Sig.

(Constant) 1.428 .825 1.730 .085

Annual sales change _.003 _.011 _.016 _.234 _.815

ROE change -.013 .104 -.009 -.128 .898

Quality of mergers _-1.312 _.679 _-.128 _-1.931 _.055

1

Native country .446 .765 .039 .583 .560

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Appendix 3.2: Cash compensation change; Annual sales change, Stock return change

Model Summary Model R R Square Adjusted R Square Std. Error of the Estimate 1 .139(a) .019 .003 5.00215689

a Predictors: (Constant), Stock return change, Annual sales change, Quality of mergers, Native country

ANOVA(b)

Model

Sum of

Regression _115.108 ₄ _28.777 _1.150 _.334(a)

Residual 5830.027 233 25.022

1

Total _5945.135 ₂₃₇

a Predictors: (Constant), Stock return change, Annual sales change, Quality of mergers, Native country b Dependent Variable: Cash executive compensation change

Coefficients(a)

(Constant) 1.432 .840 1.704 .090

Quality of mergers -1.300 .678 -.127 -1.917 .056

Native country _.440 _.787 _.039 _.560 _.576

1

Stock return change .072 1.355 .004 .053 .958

a Dependent Variable: Cash executive compensation change

(7)

Appendix 3.3: Cash compensation change; Total assets change, Stock return change

a Predictors: (Constant), Total assets change, Stock return change, Quality of mergers, Native country

ANOVA(b)

Model

Sum of

Regression _116.044 ₄ _29.011 _1.160 _.329(a)

Residual 5829.091 233 25.018

1

Total _5945.135 ₂₃₇

a Predictors: (Constant), Total assets change, Stock return change, Quality of mergers, Native country b Dependent Variable: Cash executive compensation change

Coefficients(a)

(Constant) _1.397 _.857 _1.631 _.104

Native country _.437 _.781 _.038 _.560 _.576

Stock return change .076 1.353 .004 .056 .955

1

Total assets change .039 .115 .022 .342 .733

(8)

Appendix 3.4: Cash compensation change; Total assets change, ROE change

a Predictors: (Constant), ROE change, Native country, Quality of mergers, Total assets change

ANOVA(b)

Model

Sum of

Regression _116.290 ₄ _29.073 _1.162 _.328(a)

Residual 5828.844 233 25.016

1

Total _5945.135 ₂₃₇

a Predictors: (Constant), ROE change, Native country, Quality of mergers, Total assets change b Dependent Variable: Cash executive compensation change

Coefficients(a)

(Constant) 1.394 .843 1.654 .100

Native country .445 .759 .039 .586 .558

Total assets change _.036 _.120 _.020 _.298 _.766

1

ROE change -.012 .104 -.008 -.114 .909

a Dependent Variable: Cash executive compensation change

(9)

Appendix 3.5: Total compensation change; Annual sales change, ROE change

a Predictors: (Constant), Native country, ROE change, Quality of mergers, Annual sales change

ANOVA(b)

Model

Sum of

Regression _176.259 ₄ _44.065 _1.703 _.150(a)

Residual 6027.342 233 25.868

1

Total _6203.601 ₂₃₇

a Predictors: (Constant), Native country, ROE change, Quality of mergers, Annual sales change b Dependent Variable: Total executive compensation change

Coefficients(a)

(Constant) 1.654 .839 1.971 .050

ROE change -.007 .106 -.005 -.071 .944

1

Native country .572 .777 .049 .736 .462

(10)

Appendix 3.6: Total compensation change; Annual sales change, Stock return change

a Predictors: (Constant), Stock return change, Annual sales change, Quality of mergers, Native country

ANOVA(b)

Model

Sum of

Regression _176.133 ₄ _44.033 _1.702 _.150(a)

Residual 6027.468 233 25.869

1

Total _6203.601 ₂₃₇

a Predictors: (Constant), Stock return change, Annual sales change, Quality of mergers, Native country b Dependent Variable: Total executive compensation change

Coefficients(a)

(Constant) 1.650 .854 1.932 .055

Native country _.577 _.800 _.050 _.721 _.472

1

Stock return change -.016 1.377 -.001 -.011 .991

a Dependent Variable: Total executive compensation change

(11)

Appendix 3.7: Total compensation change; Total assets change, Stock return change

a Predictors: (Constant), Total assets change, Stock return change, Quality of mergers, Native country

ANOVA(b)

Model

Sum of

Regression _185.808 ₄ _46.452 _1.799 _.130(a)

Residual 6017.793 233 25.827

1

Total _6203.601 ₂₃₇

a Predictors: (Constant), Total assets change, Stock return change, Quality of mergers, Native country b Dependent Variable: Total executive compensation change

Coefficients(a)

(Constant) 1.544 .870 1.774 .077

Native country .608 .793 .052 .766 .444

Stock return change _-.031 _1.374 _-.001 _-.022 _.982

1

Total assets change .081 .117 .045 .689 .492

(12)

Appendix 3.8: Total compensation change; Total assets change, ROE change

a Predictors: (Constant), ROE change, Native country, Quality of mergers, Total assets change

ANOVA(b)

Model

Sum of

Regression _185.830 ₄ _46.458 _1.799 _.130(a)

Residual 6017.771 233 25.827

1

Total _6203.601 ₂₃₇

a Predictors: (Constant), ROE change, Native country, Quality of mergers, Total assets change b Dependent Variable: Total executive compensation change

Coefficients(a)

(Constant) 1.546 .856 1.805 .072

Native country .605 .771 .052 .784 .434

Total assets change _.082 _.122 _.046 _.670 _.503

1

ROE change .004 .106 .002 .037 .971

a Dependent Variable: Total executive compensation change

APPENDIX 1: Selection procedures