Table 6. Chair–CEO age gap and...

Table 6.

Chair–CEO age gap and investment efficiency

Variables	(1)	(2)	(3)	(4)	(5)
Variables	IE	IE	IED	IED	IE
GAPS	−0.001*** (−2.861)		−0.055*** (−2.825)
GAPU		−0.0002* (−1.760)		−0.010*** (−3.165)	2.12
DIFEDU	0.003* (1.672)	0.003* (1.676)	0.094* (1.859)	0.095* (1.889)	1.09
DIFNAT	0.002 (0.584)	0.002 (0.662)	0.206* (1.804)	0.225** (1.967)	1.03
DIFGEN	0.001 (0.343)	0.001 (0.465)	0.017 (0.289)	0.032 (0.530)	1.04
JONTENU	−0.001*** (−3.112)	−0.001*** (−3.319)	−0.016 (−1.285)	−0.023* (−1.814)	6.98
CHAIRAGE	0.001*** (2.999)	0.000* (1.752)	0.050*** (2.610)	0.002 (0.654)	1.92
CHANGE1	0.001 (0.259)	0.001 (0.277)	−0.017 (−0.126)	−0.013 (−0.102)	1.05
TENURE1	0.001*** (3.974)	0.001*** (4.071)	0.014** (2.185)	0.016** (2.431)	2.54
CEOAGE	−0.001*** (−2.937)	−0.000 (−1.567)	−0.056*** (-2.909)	−0.008** (−2.545)	1.91
CHANGE2	0.008** (2.154)	0.008** (2.182)	−0.000 (−0.001)	0.008 (0.051)	1.04
TENURE2	0.001*** (4.453)	0.001*** (4.602)	0.013 (1.280)	0.017* (1.673)	4.90
BODSIZE	0.001** (2.098)	0.001** (2.133)	−0.019** (−1.980)	−0.018* (−1.917)	1.22
BKTMK	0.009 (1.573)	0.009 (1.643)	−0.257 (−1.477)	−0.238 (−1.366)	2.47
LEVER	−0.003 (−0.485)	−0.002 (−0.432)	−0.538*** (-3.163)	−0.525*** (-3.085)	4.55
FCF	0.012*** (7.581)	0.012*** (7.579)	0.203*** (5.153)	0.203*** (5.146)	1.09
FSIZE	−0.002*** (−2.659)	−0.002*** (−2.692)	−0.008 (−0.429)	−0.009 (−0.463)	2.21
SDSALE	−0.019*** (−4.251)	−0.020*** (-4.267)	−0.265** (-1.969)	−0.267** (-1.986)	1.50
SALEGR	−0.017*** (−9.082)	−0.017*** (−9.080)	−0.185*** (−4.220)	−0.185*** (−4.219)	1.39
SOE%	−0.010** (−2.401)	−0.010** (−2.451)	−0.531*** (−4.372)	−0.541*** (−4.456)	1.74
LOSS	0.005*** (3.022)	0.005*** (3.007)	0.127** (2.501)	0.126** (2.474)	1.20
Z-Score	0.001*** (3.955)	0.001*** (4.004)	0.017*** (3.448)	0.018*** (3.525)	2.70
TANGI	0.056*** (7.630)	0.056*** (7.630)	1.048*** (5.418)	1.046*** (5.409)	1.22
K-Structure	−0.013*** (−6.052)	−0.013*** (−6.075)	−0.143** (−2.286)	−0.146** (−2.331)	1.77
MFE	0.004 (0.496)	0.004 (0.517)	0.207 (0.877)	0.215 (0.905)	1.39
FIRMAGE	0.002 (1.510)	0.002 (1.537)	0.007 (0.139)	0.010 (0.200)	1.68
Constant	−0.153*** (−9.767)	−0.153*** (−9.721)	−0.967** (−2.053)	−0.939** (−1.992)
Industry	Yes	Yes	Yes	Yes
Year	Yes	Yes	Yes	Yes
Observations	20,358	20,358	20,358	20,358
Adjusted-R²/pseudo-R²	0.2610	0.2610	0.1414	0.1415
Mean VIF					4.16

Variables	(1)	(2)	(3)	(4)	(5)
Variables	IE	IE	IED	IED	IE
GAPS	−0.001*** (−2.861)		−0.055*** (−2.825)
GAPU		−0.0002* (−1.760)		−0.010*** (−3.165)	2.12
DIFEDU	0.003* (1.672)	0.003* (1.676)	0.094* (1.859)	0.095* (1.889)	1.09
DIFNAT	0.002 (0.584)	0.002 (0.662)	0.206* (1.804)	0.225** (1.967)	1.03
DIFGEN	0.001 (0.343)	0.001 (0.465)	0.017 (0.289)	0.032 (0.530)	1.04
JONTENU	−0.001*** (−3.112)	−0.001*** (−3.319)	−0.016 (−1.285)	−0.023* (−1.814)	6.98
CHAIRAGE	0.001*** (2.999)	0.000* (1.752)	0.050*** (2.610)	0.002 (0.654)	1.92
CHANGE1	0.001 (0.259)	0.001 (0.277)	−0.017 (−0.126)	−0.013 (−0.102)	1.05
TENURE1	0.001*** (3.974)	0.001*** (4.071)	0.014** (2.185)	0.016** (2.431)	2.54
CEOAGE	−0.001*** (−2.937)	−0.000 (−1.567)	−0.056*** (-2.909)	−0.008** (−2.545)	1.91
CHANGE2	0.008** (2.154)	0.008** (2.182)	−0.000 (−0.001)	0.008 (0.051)	1.04
TENURE2	0.001*** (4.453)	0.001*** (4.602)	0.013 (1.280)	0.017* (1.673)	4.90
BODSIZE	0.001** (2.098)	0.001** (2.133)	−0.019** (−1.980)	−0.018* (−1.917)	1.22
BKTMK	0.009 (1.573)	0.009 (1.643)	−0.257 (−1.477)	−0.238 (−1.366)	2.47
LEVER	−0.003 (−0.485)	−0.002 (−0.432)	−0.538*** (-3.163)	−0.525*** (-3.085)	4.55
FCF	0.012*** (7.581)	0.012*** (7.579)	0.203*** (5.153)	0.203*** (5.146)	1.09
FSIZE	−0.002*** (−2.659)	−0.002*** (−2.692)	−0.008 (−0.429)	−0.009 (−0.463)	2.21
SDSALE	−0.019*** (−4.251)	−0.020*** (-4.267)	−0.265** (-1.969)	−0.267** (-1.986)	1.50
SALEGR	−0.017*** (−9.082)	−0.017*** (−9.080)	−0.185*** (−4.220)	−0.185*** (−4.219)	1.39
SOE%	−0.010** (−2.401)	−0.010** (−2.451)	−0.531*** (−4.372)	−0.541*** (−4.456)	1.74
LOSS	0.005*** (3.022)	0.005*** (3.007)	0.127** (2.501)	0.126** (2.474)	1.20
Z-Score	0.001*** (3.955)	0.001*** (4.004)	0.017*** (3.448)	0.018*** (3.525)	2.70
TANGI	0.056*** (7.630)	0.056*** (7.630)	1.048*** (5.418)	1.046*** (5.409)	1.22
K-Structure	−0.013*** (−6.052)	−0.013*** (−6.075)	−0.143** (−2.286)	−0.146** (−2.331)	1.77
MFE	0.004 (0.496)	0.004 (0.517)	0.207 (0.877)	0.215 (0.905)	1.39
FIRMAGE	0.002 (1.510)	0.002 (1.537)	0.007 (0.139)	0.010 (0.200)	1.68
Constant	−0.153*** (−9.767)	−0.153*** (−9.721)	−0.967** (−2.053)	−0.939** (−1.992)
Industry	Yes	Yes	Yes	Yes
Year	Yes	Yes	Yes	Yes
Observations	20,358	20,358	20,358	20,358
Adjusted-R²/pseudo-R²	0.2610	0.2610	0.1414	0.1415
Mean VIF					4.16

Note(s):

This table reports Chair–CEO age dissimilarity and IE (Richardson model). Columns (1) and (2) report the results from the OLS regression of the association between Chair–CEO age dissimilarity (GAPS and GAPU) and IE. Columns (3) and (4) report the results from the Logit regression of the association between Chair–CEO age dissimilarity (GAPS and GAPU) and IED. *p < 0.10, **p < 0.05, ***p < 0.01. Robust t-statistics (in parentheses) are based on standard errors clustered by firm and year. All the variables are defined in Appendix

Source(s): Authors’ calculations

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