Table A1 Definitions and measurement of...

Table A1

Definitions and measurement of variables

Variable	Definition	Measurement
Dependent Variable
LnEQUAL	Accounting Quality	Calculated via the Modified Jones model the absolute values of discretionary accruals converted to Natural Logarithm to proxy accounting quality
Independent Variables
MAJ_TRIBE	Majority tribal connection	“1” if the director is a Kikuyu or a Kalenjin and “0” otherwise
MIN_TRIBE	Minority tribal connection	“1” if the director belongs to a native tribe other than Kikuyu or Kalenjin and “0” otherwise Notes The third author of the study is a Kenyan. While names are one way of identifying tribal affiliations, he also used his personal knowledge and Kenyan business acquaintances to identify the tribal affiliations of each director from publicly available information sources The remainder of the directors were European, Asian, and other nationalities who received a score of zero for both MAJ_TRIBE and MIN_TRIBE.
PARL	Member of Parliament (MP) and/or Ex-Member of Parliament	Number of parliamentary positions held as an MP/Ex MP, and significant parliamentary positions, such as parliamentary committee chairs, otherwise zero
GOVT	Government officials	Number of government positions in national government and government-affiliated agencies, otherwise zero
Moderator Variables
MAJ_TRIBE PARL*	Moderating variable for Parliamentary connections	[“1” if the director is a Kikuyu or a Kalenjin and “0” otherwise] * [Number of parliamentary positions held as an MP/Ex MP, and significant parliamentary positions, such as parliamentary committee chairs, otherwise zero]
MAJ_TRIBE GOVT*	Moderating variable for Governmental connections	[“1” if the director is a Kikuyu or a Kalenjin and “0” otherwise] * [Number of governmental positions held as an MP/Ex MP, and significant parliamentary positions, such as parliamentary committee chairs, otherwise zero]
Control Variables
ROA	Return on Assets	Net income divided by Total Asset
LEV	Debt on Assets	Computed as the Long-term debt divided by Total Assets
M2B	Market to Book Ratio	Market capitalisation divided by the book value of equity
GROW	Asset Growth	Net asset growth year-on-year (ratio)
AGE	Age of the company	Number of years as a listed firm on the NSE (up to the evaluation year of 2017
BIG4	Audit Firms	“1” if the firm is audited by a Big 4 Audit firm and “0” otherwise
AUDCOM	Independent executive directors	“1” if the director is an independent executive and a member of the audit committee and “0” otherwise
NOMCOM	Independent non-executive directors	“1” if the director is an independent non-executive and a member of the board nominating committee and “0” otherwise
FIN_EXP	Directors with financial expertise	“1” if the director has financial expertise and “0” otherwise
IND_EXP	Directors with industry experience	“1” if the director has prior industry experience and “0” otherwise
GEN_F	Female director	“1” if the director is a female and “0” otherwise
$E Q U A L_d u m m y$	Earnings Quality dummy	“1” if the DA is positive and “0” otherwise

Variable	Definition	Measurement
Dependent Variable
LnEQUAL	Accounting Quality	Calculated via the Modified Jones model the absolute values of discretionary accruals converted to Natural Logarithm to proxy accounting quality
Independent Variables
MAJ_TRIBE	Majority tribal connection	“1” if the director is a Kikuyu or a Kalenjin and “0” otherwise
MIN_TRIBE	Minority tribal connection	“1” if the director belongs to a native tribe other than Kikuyu or Kalenjin and “0” otherwiseNotes The third author of the study is a Kenyan. While names are one way of identifying tribal affiliations, he also used his personal knowledge and Kenyan business acquaintances to identify the tribal affiliations of each director from publicly available information sources The remainder of the directors were European, Asian, and other nationalities who received a score of zero for both MAJ_TRIBE and MIN_TRIBE.
PARL	Member of Parliament (MP) and/or Ex-Member of Parliament	Number of parliamentary positions held as an MP/Ex MP, and significant parliamentary positions, such as parliamentary committee chairs, otherwise zero
GOVT	Government officials	Number of government positions in national government and government-affiliated agencies, otherwise zero
Moderator Variables
MAJ_TRIBE* PARL	Moderating variable for Parliamentary connections	[“1” if the director is a Kikuyu or a Kalenjin and “0” otherwise] * [Number of parliamentary positions held as an MP/Ex MP, and significant parliamentary positions, such as parliamentary committee chairs, otherwise zero]
MAJ_TRIBE* GOVT	Moderating variable for Governmental connections	[“1” if the director is a Kikuyu or a Kalenjin and “0” otherwise] * [Number of governmental positions held as an MP/Ex MP, and significant parliamentary positions, such as parliamentary committee chairs, otherwise zero]
Control Variables
ROA	Return on Assets	Net income divided by Total Asset
LEV	Debt on Assets	Computed as the Long-term debt divided by Total Assets
M2B	Market to Book Ratio	Market capitalisation divided by the book value of equity
GROW	Asset Growth	Net asset growth year-on-year (ratio)
AGE	Age of the company	Number of years as a listed firm on the NSE (up to the evaluation year of 2017
BIG4	Audit Firms	“1” if the firm is audited by a Big 4 Audit firm and “0” otherwise
AUDCOM	Independent executive directors	“1” if the director is an independent executive and a member of the audit committee and “0” otherwise
NOMCOM	Independent non-executive directors	“1” if the director is an independent non-executive and a member of the board nominating committee and “0” otherwise
FIN_EXP	Directors with financial expertise	“1” if the director has financial expertise and “0” otherwise
IND_EXP	Directors with industry experience	“1” if the director has prior industry experience and “0” otherwise
GEN_F	Female director	“1” if the director is a female and “0” otherwise
$E Q U A L_d u m m y$	Earnings Quality dummy	“1” if the DA is positive and “0” otherwise

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