Table 6

Sensitivity analysis: alternative clustering of standard errors4

ParametersFirm clusterIndustry clusterYear-industry cluster
SRVROAVSRVROAVSRVROAV
Intercept0.451*** (8.21)0.201*** (3.74)0.461*** (10.41)0.148*** (4.56)0.416*** (10.41)0.148*** (4.66)
EngCEO0.018** (2.40)0.009 (1.52)0.017** (2.51)0.011** (1.97)0.017** (2.48)0.016** (1.96)
BEng0.014 (0.79)−0.056*** (−3.95)0.008 (0.52)−0.042*** (−3.13)0.009 (0.55)−0.042*** (−3.13)
BSize−0.001 (−0.78)−0.002 (−1.49)−0.002 (−1.41)−0.001 (1.35)−0.002 (−1.41)−0.001 (−1.35)
BInd0.000 (1.22)−0.000* (−1.72)0.000 (0.71)−0.000 (−1.07)0.000 (0.67)−0.000 (−1.07)
ROA−0.073*** (3.8)−0.054*** (−3.43)−0.084*** (−4.77)−0.096*** (−6.81)−0.083*** (−4.72)−0.096*** (−6.80)
FirmSize−0.016*** (−6.72)−0.006** (−2.85)−0.013*** (−7.53)−0.004*** (−2.92)−0.013*** (−7.59)−0.004*** (−2.92)
Leverage0.001 (1.17)0.002 (1.57)0.001 (1.01)0.001* (1.74)0.001 (1.08)0.001* (1.74)
CAPEX−0.000 (−0.72)−0.000** (−2.24)0.000 (0.29)−0.000*** (−3.12)0.000 (0.37)−0.000** (−3.11)
SalesGrowth−0.007 (−1.44)0.015*** (4.07)−0.001 (−0.39)0.019*** (4.65)−0.001 (−0.29)0.019*** (4.66)
CEOGender0.000 (0.03)−0.000 (−0.05)−0.006 (−0.68)0.001 (0.19)−0.006 (−0.76)0.001 (0.19)
CEODuality−0.008 (−1.06)0.004 (0.61)−0.003 (−0.40)0.001 (0.21)−0.002 (−0.36)0.001 (0.21)
CEOTenure−0.000 (−0.40)0.000* (1.82)−0.000 (−0.18)−0.000 (−0.30)−0.000 (−0.20)−0.000 (−0.30)
Year and industry fixed effectsYesYesYesYesYesYes

Note(s): *, ** and *** indicate statistical significance at 10, 5, and 1% levels, respectively. Variables are as defined in Table 1. t-statistics are reported in parentheses

Source(s): Authors’ own work

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