Table 4 Regression analysis –...

Table 4

Regression analysis – alternative measure of the cost of equity capital

Variables	(1)	(2)	(3)	(4)	(5)	(6)
	KCT	KCT	KCT	KGLS	KGLS	KGLS
Intercept	0.114***	0.122***	0.120***	0.096***	0.102***	0.101***
Intercept	(29.384)	(34.276)	(33.839)	(26.532)	(30.659)	(30.664)
LNFEM	−0.004***			−0.003***
LNFEM	(−4.767)			(−4.688)
FEMDUM		−0.002			−0.002**
FEMDUM		(−0.346)			(−2.37)
FEMPER			−0.013***			−0.012***
FEMPER			(−3.801)			(−3.832)
LNBOD	−0.019***	−0.023***	−0.022***	−0.006***	−0.008***	−0.008***
LNBOD	(−13.346)	(−17.438)	(−17.304)	(−4.467)	(−6.908)	(−7.094)
INDPER	−0.001	−0.001	−0.001	−0.004**	−0.005***	−0.004**
INDPER	(−0.091)	(−0.529)	(−0.139)	(−2.234)	(−2.674)	(−2.456)
CEODUAL	0.002***	0.002***	0.002***	0.001	0.001	0.001
CEODUAL	(3.449)	(3.486)	(3.439)	(0.232)	(0.271)	(0.223)
LNMEET	−0.003***	−0.003***	−0.003***	0.002**	0.002**	0.002**
LNMEET	(−3.017)	(−3.086)	(−3.013)	(2.248)	(2.186)	(2.252)
BIG4	0.002	0.002	0.002	−0.001	−0.001	−0.001
BIG4	(1.625)	(1.441)	(1.60)	(−0.416)	(−0.402)	(−0.435)
AUDOPIN	−0.001	−0.001	−0.001	−0.006***	−0.006***	−0.006***
AUDOPIN	(−1.069)	(−0.81)	(−1.005)	(−9.589)	(−9.389)	(−9.529)
RESTATE	0.001	0.001	0.001	0.002	0.002	0.002
RESTATE	(0.309)	(0.347)	(0.323)	(1.378)	(1.407)	(1.39)
LNSIZE	0.002***	0.002***	0.002***	0.001***	0.001***	0.001***
LNSIZE	(7.473)	(6.616)	(7.252)	(4.541)	(4.007)	(4.337)
LEVER	0.017***	0.017***	0.017***	0.010***	0.010***	0.010***
LEVER	(8.821)	(8.766)	(8.795)	(5.472)	(5.419)	(5.448)
LOSS	−0.009***	−0.009***	−0.009***	−0.003*	−0.003*	−0.003*
LOSS	(−6.245)	(−6.17)	(−6.229)	(−1.802)	(−1.786)	(−1.79)
ROA	−0.017***	−0.017***	−0.017***	−0.037***	−0.037***	−0.037***
ROA	(−6.932)	(−7.001)	(−6.963)	(−15.779)	(−15.848)	(−15.807)
SALEGR	−0.004**	−0.004**	−0.004**	0.004***	0.005***	0.004***
SALEGR	(−2.491)	(−2.208)	(−2.432)	(2.736)	(2.913)	(2.785)
BETA	0.011***	0.011***	0.011***	0.008***	0.008***	0.008***
BETA	(15.546)	(15.931)	(15.619)	(12.07)	(12.324)	(12.136)
Industry	Yes	Yes	Yes	Yes	Yes	Yes
Year	Yes	Yes	Yes	Yes	Yes	Yes
Observations	8,224	8,224	8,224	8,224	8,224	8,224
Adj R²	7.74	7.53	7.76	7.14	6.93	7.34

Variables	(1)	(2)	(3)	(4)	(5)	(6)
	KCT	KCT	KCT	KGLS	KGLS	KGLS
Intercept	0.114***	0.122***	0.120***	0.096***	0.102***	0.101***
Intercept	(29.384)	(34.276)	(33.839)	(26.532)	(30.659)	(30.664)
LNFEM	−0.004***			−0.003***
LNFEM	(−4.767)			(−4.688)
FEMDUM		−0.002			−0.002**
FEMDUM		(−0.346)			(−2.37)
FEMPER			−0.013***			−0.012***
FEMPER			(−3.801)			(−3.832)
LNBOD	−0.019***	−0.023***	−0.022***	−0.006***	−0.008***	−0.008***
LNBOD	(−13.346)	(−17.438)	(−17.304)	(−4.467)	(−6.908)	(−7.094)
INDPER	−0.001	−0.001	−0.001	−0.004**	−0.005***	−0.004**
INDPER	(−0.091)	(−0.529)	(−0.139)	(−2.234)	(−2.674)	(−2.456)
CEODUAL	0.002***	0.002***	0.002***	0.001	0.001	0.001
CEODUAL	(3.449)	(3.486)	(3.439)	(0.232)	(0.271)	(0.223)
LNMEET	−0.003***	−0.003***	−0.003***	0.002**	0.002**	0.002**
LNMEET	(−3.017)	(−3.086)	(−3.013)	(2.248)	(2.186)	(2.252)
BIG4	0.002	0.002	0.002	−0.001	−0.001	−0.001
BIG4	(1.625)	(1.441)	(1.60)	(−0.416)	(−0.402)	(−0.435)
AUDOPIN	−0.001	−0.001	−0.001	−0.006***	−0.006***	−0.006***
AUDOPIN	(−1.069)	(−0.81)	(−1.005)	(−9.589)	(−9.389)	(−9.529)
RESTATE	0.001	0.001	0.001	0.002	0.002	0.002
RESTATE	(0.309)	(0.347)	(0.323)	(1.378)	(1.407)	(1.39)
LNSIZE	0.002***	0.002***	0.002***	0.001***	0.001***	0.001***
LNSIZE	(7.473)	(6.616)	(7.252)	(4.541)	(4.007)	(4.337)
LEVER	0.017***	0.017***	0.017***	0.010***	0.010***	0.010***
LEVER	(8.821)	(8.766)	(8.795)	(5.472)	(5.419)	(5.448)
LOSS	−0.009***	−0.009***	−0.009***	−0.003*	−0.003*	−0.003*
LOSS	(−6.245)	(−6.17)	(−6.229)	(−1.802)	(−1.786)	(−1.79)
ROA	−0.017***	−0.017***	−0.017***	−0.037***	−0.037***	−0.037***
ROA	(−6.932)	(−7.001)	(−6.963)	(−15.779)	(−15.848)	(−15.807)
SALEGR	−0.004**	−0.004**	−0.004**	0.004***	0.005***	0.004***
SALEGR	(−2.491)	(−2.208)	(−2.432)	(2.736)	(2.913)	(2.785)
BETA	0.011***	0.011***	0.011***	0.008***	0.008***	0.008***
BETA	(15.546)	(15.931)	(15.619)	(12.07)	(12.324)	(12.136)
Industry	Yes	Yes	Yes	Yes	Yes	Yes
Year	Yes	Yes	Yes	Yes	Yes	Yes
Observations	8,224	8,224	8,224	8,224	8,224	8,224
Adj R²	7.74	7.53	7.76	7.14	6.93	7.34

Note(s): This table reports regression results of the relation between the cost of equity capital (using alternative measures) and female directorship. The dependent variables are KCT and KGLS. ***, **, * Indicate statistical significance at the 1, 5 and 10 percent levels, respectively, based on a two-tailed test. t-statistics are in parentheses. Standard errors are two-way clustered by firm and year to correct for cross-sectional and time-series dependence. See Appendix for variable definitions

Source(s): Computed by authors

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