Table 11
When acquired plants are previously domestically owned

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When acquired plants are previously domestically owned: Part 1
Domestic to domestic Domestic to domestic Domestic to foreign
Probit estimate Marginal effects at median Probit estimate Marginal effects at median
coefficient t-statistics 3 coefficient t-statistics 3 coefficient t-statistics 3 coefficient t-statistics 3
Plant knowledge intensity 0.22824 14.66** 0.00892 7.40** 0.22526 14.37** 0.00141 4.05**
Plant size 0.01928 8.85** 0.00075 5.98** 0.01551 8.60** 0.0001 3.67**
Plant age for younger plants 1 0.00650 4.19** 0.00025 3.08** 0.00561 3.22** 0.00004 2.24*
Plant age for older plants 1 0.00753 5.28** 0.00029 3.46** 0.00514 3.01** 0.00003 2.08*
Plant number of products 0.02338 2.69** 0.00091 2.60** 0.00492 0.42 0.00003 -0.43**
Unrelated plant binary variable 2 0.48412 10.98** 0.03177 5.23** 0.33277 5.18** 0.00342 2.66**
Change in plant knowledge intensity 0.12632 8.70** 0.00494 5.89** 0.12202 6.42** 0.00076 3.20**
Change in plant size 6.56197 1.88 † 0.25651 1.91 † 3.89246 0.79 0.0244 -0.77
Change in plant wage rate -0.00981 -0.28 -0.00038 -0.27 -0.04176 -0.65 -0.00026 -0.66
Change in plant profit rate -0.00008 -0.17 0.00000 -0.17 0.00017 0.23 1.09E-06 -0.23
Number of plants in industry -0.00014 -4.76** -0.00001 -3.05** -0.00024 -6.63** -1.47E-06 -2.99**
Industry relative plant size 0.01025 -1.56 0.00040 -1.54 -0.00110 -0.20 -6.89E-06 -0.20
Industry relative knowledge intensity 0.01094 -0.13 0.00043 -0.13 0.06735 -1.04 0.00042 -0.97
Industry relative wage rate 0.32891 2.51* 0.01286 2.71** 0.44441 2.87** 0.00279 2.90**
Industry relative profit rate 0.37198 -3.08 0.01454 3.37** 0.56930 4.00** 0.00357 2.85**
Natural resource industries -0.04944 -0.88 -0.00183 -0.87 -0.00346 -0.04 -0.00002 -0.04
Labour-intensive industries -0.22990 -3.08** -0.00703 -2.80** -0.14187 -1.96* -0.00073 -1.69 †
Product-differentiated industries -0.21845 -3.59** -0.00676 -3.19** 0.07246 1.07 0.0005 -1.08
Science-based industries -0.08318 -1.04 -0.00297 -1.06 0.11620 1.26 0.00086 -1.17
When acquired plants are previously domestically owned: Part 2
Domestic to domestic Domestic to domestic Domestic to foreign
Probit estimate Probit estimate
Observations 365,067 361,889
Pseudo R-squared 0.1018 0.1067
1.
Plant age for younger plants are for those plants that came into existence after 1961. Plant age for older plants are for plants that came into existence in or before 1961. Since there is no information on the exact age of this group because the database starts in 1961, their age is coded starting in 1961.
2.
Binary variable to capture related or unrelated merger/acquisition. It takes on value of 1 if the acquired plant is owned by a firm whose primary activity is in another industry, and 0 otherwise.
3.
Robust t-statistics.
Note(s):
Regression results on year dummies and the constant are not reported due to space limitations. Dependent variable takes on values of 0 or 1. Definitions for independent variables are documented in Section 4. Symbols **, * and † denote a significance level of 1%, 5% and 10% respectively.
Source(s):
Longitudinal Manufacturing Research Database, Statistics Canada.