Table 11 Impact of firm life cycle on...

Table 11

Impact of firm life cycle on the association between female directorship and cost of equity capital

Variables	(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)	(9)	(10)
	PEG	PEG	PEG	PEG	PEG	MPEG	MPEG	MPEG	MPEG	MPEG
	INTRO	GROWTH	MATURE	DECLINE	SHAKE	INTRO	GROWTH	MATURE	DECLINE	SHAKE
Intercept	0.138**	0.101***	0.078***	0.324**	0.089***	0.269***	0.176***	0.161***	0.223*	0.126***
Intercept	(2.007)	(6.581)	(10.055)	(2.395)	(3.306)	(4.138)	(11.886)	(22.657)	(1.953)	(5.61)
LNFEM	−0.014	−0.004**	−0.003**	0.009	0.002	0.016	−0.005*	−0.006***	−0.031	−0.008*
LNFEM	(−0.963)	(−2.216)	(−2.269)	(0.326)	(0.293)	(1.186)	(−1.931)	(−4.111)	(−1.331)	(−1.80)
LNBOD	−0.036	−0.006	−0.001	−0.032	−0.004	−0.045*	−0.02***	−0.018***	0.008	−0.024***
LNBOD	(−1.427)	(−1.246)	(−0.488)	(−0.773)	(−0.462)	(−1.896)	(−4.098)	(−7.164)	(0.227)	(−3.066)
INDPER	0.013	0.002	−0.004	0.026	−0.003	0.001	−0.002	−0.001	0.022	−0.018
INDPER	(0.55)	(0.374)	(−1.14)	(0.319)	(−0.182)	(0.004)	(−0.34)	(−0.075)	(0.316)	(−1.287)
CEODUAL	0.009	0.001	0.003**	−0.022	0.002	0.011	−0.004	−0.001	0.021	−0.007*
CEODUAL	(0.728)	(0.549)	(2.123)	(−1.015)	(0.53)	(1.01)	(−1.594)	(−1.113)	(1.054)	(−1.939)
LNMEET	0.005	0.001	0.007***	−0.044	0.013*	−0.008	−0.01**	−0.001	−0.057*	0.014**
LNMEET	(0.302)	(0.273)	(3.517)	(−1.296)	(1.842)	(−0.456)	(−2.557)	(−0.77)	(−1.978)	(2.435)
BIG4	−0.012	−0.002	−0.006**	−0.038	0.014	−0.035*	−0.001	−0.002	0.015	0.011
BIG4	(−0.60)	(−0.546)	(−2.085)	(−1.267)	(1.622)	(−1.818)	(−0.18)	(−0.803)	(0.599)	(1.497)
AUDOPIN	0.022*	0.005**	0.005***	0.026	0.012***	−0.016	0.002	−0.002	−0.004	−0.008**
AUDOPIN	(1.839)	(2.059)	(3.53)	(1.138)	(2.623)	(−1.404)	(0.875)	(−1.478)	(−0.193)	(−2.10)
RESTATE	0.015	0.007	0.002	−0.046	0.004	0.031	0.009*	0.006**	0.027	−0.001
RESTATE	(0.773)	(1.385)	(0.559)	(−1.127)	(0.382)	(1.645)	(1.666)	(2.398)	(0.781)	(−0.146)
LNSIZE	−0.002	−0.001	−0.001	−0.004	−0.006***	−0.001*	−0.001	−0.001**	−0.008	0.002
LNSIZE	(−0.417)	(−0.753)	(−1.524)	(−0.44)	(−3.54)	(−1.714)	(−0.484)	(−2.43)	(−1.015)	(1.388)
LEVER	0.003	0.031***	0.018***	−0.018	0.028***	−0.007	0.019**	0.019***	0.082**	0.032***
LEVER	(0.102)	(3.644)	(4.995)	(−0.40)	(2.677)	(−0.226)	(2.29)	(5.645)	(2.116)	(3.654)
LOSS	0.038***	0.010	0.02***	0.038	0.014*	0.019	0.012*	0.014***	−0.028	0.027***
LOSS	(2.785)	(1.601)	(4.471)	(1.318)	(1.739)	(1.495)	(1.96)	(3.343)	(−1.123)	(3.86)
ROA	0.013	−0.157***	−0.113***	−0.024	−0.085***	0.017	−0.062***	−0.09***	−0.094	−0.062***
ROA	(0.993)	(−8.817)	(−16.094)	(−0.311)	(−5.545)	(1.403)	(−3.605)	(−13.948)	(−1.464)	(−4.866)
SALEGR	−0.036*	0.004	−0.007*	0.056	−0.016	−0.009	0.013**	0.011***	−0.024	−0.001
SALEGR	(−1.781)	(0.764)	(−1.702)	(1.327)	(−1.482)	(−0.49)	(2.36)	(2.868)	(−0.687)	(−0.152)
BETA	0.05***	0.012***	0.017***	0.001	0.015***	0.059***	0.015***	0.014***	0.036**	0.012***
BETA	(3.742)	(4.695)	(11.782)	(0.04)	(3.303)	(4.663)	(5.996)	(10.509)	(2.171)	(3.167)
Industry	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Year	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Observations	139	1,745	4,835	62	660	139	1,745	4,835	62	660
Adj R²	22.90	11.76	13.98	32.52	18.47	27.58	7.82	12.95	33.61	19.34

Variables	(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)	(9)	(10)
	PEG	PEG	PEG	PEG	PEG	MPEG	MPEG	MPEG	MPEG	MPEG
	INTRO	GROWTH	MATURE	DECLINE	SHAKE	INTRO	GROWTH	MATURE	DECLINE	SHAKE
Intercept	0.138**	0.101***	0.078***	0.324**	0.089***	0.269***	0.176***	0.161***	0.223*	0.126***
Intercept	(2.007)	(6.581)	(10.055)	(2.395)	(3.306)	(4.138)	(11.886)	(22.657)	(1.953)	(5.61)
LNFEM	−0.014	−0.004**	−0.003**	0.009	0.002	0.016	−0.005*	−0.006***	−0.031	−0.008*
LNFEM	(−0.963)	(−2.216)	(−2.269)	(0.326)	(0.293)	(1.186)	(−1.931)	(−4.111)	(−1.331)	(−1.80)
LNBOD	−0.036	−0.006	−0.001	−0.032	−0.004	−0.045*	−0.02***	−0.018***	0.008	−0.024***
LNBOD	(−1.427)	(−1.246)	(−0.488)	(−0.773)	(−0.462)	(−1.896)	(−4.098)	(−7.164)	(0.227)	(−3.066)
INDPER	0.013	0.002	−0.004	0.026	−0.003	0.001	−0.002	−0.001	0.022	−0.018
INDPER	(0.55)	(0.374)	(−1.14)	(0.319)	(−0.182)	(0.004)	(−0.34)	(−0.075)	(0.316)	(−1.287)
CEODUAL	0.009	0.001	0.003**	−0.022	0.002	0.011	−0.004	−0.001	0.021	−0.007*
CEODUAL	(0.728)	(0.549)	(2.123)	(−1.015)	(0.53)	(1.01)	(−1.594)	(−1.113)	(1.054)	(−1.939)
LNMEET	0.005	0.001	0.007***	−0.044	0.013*	−0.008	−0.01**	−0.001	−0.057*	0.014**
LNMEET	(0.302)	(0.273)	(3.517)	(−1.296)	(1.842)	(−0.456)	(−2.557)	(−0.77)	(−1.978)	(2.435)
BIG4	−0.012	−0.002	−0.006**	−0.038	0.014	−0.035*	−0.001	−0.002	0.015	0.011
BIG4	(−0.60)	(−0.546)	(−2.085)	(−1.267)	(1.622)	(−1.818)	(−0.18)	(−0.803)	(0.599)	(1.497)
AUDOPIN	0.022*	0.005**	0.005***	0.026	0.012***	−0.016	0.002	−0.002	−0.004	−0.008**
AUDOPIN	(1.839)	(2.059)	(3.53)	(1.138)	(2.623)	(−1.404)	(0.875)	(−1.478)	(−0.193)	(−2.10)
RESTATE	0.015	0.007	0.002	−0.046	0.004	0.031	0.009*	0.006**	0.027	−0.001
RESTATE	(0.773)	(1.385)	(0.559)	(−1.127)	(0.382)	(1.645)	(1.666)	(2.398)	(0.781)	(−0.146)
LNSIZE	−0.002	−0.001	−0.001	−0.004	−0.006***	−0.001*	−0.001	−0.001**	−0.008	0.002
LNSIZE	(−0.417)	(−0.753)	(−1.524)	(−0.44)	(−3.54)	(−1.714)	(−0.484)	(−2.43)	(−1.015)	(1.388)
LEVER	0.003	0.031***	0.018***	−0.018	0.028***	−0.007	0.019**	0.019***	0.082**	0.032***
LEVER	(0.102)	(3.644)	(4.995)	(−0.40)	(2.677)	(−0.226)	(2.29)	(5.645)	(2.116)	(3.654)
LOSS	0.038***	0.010	0.02***	0.038	0.014*	0.019	0.012*	0.014***	−0.028	0.027***
LOSS	(2.785)	(1.601)	(4.471)	(1.318)	(1.739)	(1.495)	(1.96)	(3.343)	(−1.123)	(3.86)
ROA	0.013	−0.157***	−0.113***	−0.024	−0.085***	0.017	−0.062***	−0.09***	−0.094	−0.062***
ROA	(0.993)	(−8.817)	(−16.094)	(−0.311)	(−5.545)	(1.403)	(−3.605)	(−13.948)	(−1.464)	(−4.866)
SALEGR	−0.036*	0.004	−0.007*	0.056	−0.016	−0.009	0.013**	0.011***	−0.024	−0.001
SALEGR	(−1.781)	(0.764)	(−1.702)	(1.327)	(−1.482)	(−0.49)	(2.36)	(2.868)	(−0.687)	(−0.152)
BETA	0.05***	0.012***	0.017***	0.001	0.015***	0.059***	0.015***	0.014***	0.036**	0.012***
BETA	(3.742)	(4.695)	(11.782)	(0.04)	(3.303)	(4.663)	(5.996)	(10.509)	(2.171)	(3.167)
Industry	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Year	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Observations	139	1,745	4,835	62	660	139	1,745	4,835	62	660
Adj R²	22.90	11.76	13.98	32.52	18.47	27.58	7.82	12.95	33.61	19.34

Note(s): This table reports regression results of the relation between the cost of equity capital and female directorship across different firm life cycles (INTRO, GROWTH, MATURE, DECLINE and SHAKE-out stage; N = 7,441). The dependent variables are PEG and MPEG. ***, **, * 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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