Table A4.

Author constructed index for managerial power and board monitoring

VariableVariable nameVariable description
Panel A: Variables included in the author-constructed index
CEOCEO dualityA dummy variable that takes the value of one if the chairman is also the CEO and takes the value of zero otherwise
Ex_CEOChairman is an ex-CEOA dummy variable that takes the value of one if the chairman has held a CEO position and takes the value of zero otherwise
BOARDINDAvailability of a policy for board independenceA dummy variable that takes the value of one if a firm has a policy for board independence and takes the value of zero otherwise
FEMALEDIRFemale directorsA dummy variable that takes the value of one if the female participation in the board is higher than the median value and takes the value of zero otherwise
ComponentEigenvalueDifferenceProportionCumulative
Panel B: Principal components/correlation
Comp11.86040.7426170.46510.4651
Comp21.117780.2673470.27940.7445
Comp30.8504330.6790430.21260.9572
Comp40.17139.0.04281
VariableComp1Comp2Comp3Comp4
Panel C: Scoring coefficients
CEO0.6884−0.17030.03580.7042
Ex_CEO0.6944−0.10520.0746−0.708
BOARDIND0.18850.6523−0.73410.0107
FEMALEDIR0.0920.73110.6740.0526

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