Table 5 The effect of board diversity on...

Table 5

The effect of board diversity on financial performance (price-to-book ratio)

	Regressing components of board diversity on price-to-book ratio (no moderating effect) (1)	Regressing the board diversity index on price-to-book ratio (with moderating effect) (2)
Gender diversity	0.240	n/a
Racial diversity	−0.511	n/a
Age diversity	0.052	n/a
Occupation diversity	0.022	n/a
After King IV	−0.043	1.885***
Diversity index	n/a	1.540**
Diversity index x After King IV	n/a	−1.854***
Board size	0.033	0.042
Board independence	0.442	0.791
Leverage	3.123***	3.279***
Company size	−2.355***	−2.628***
Sales growth	0.605	0.746*
Institutional ownership	−2.738**	−3.110***
ROA	2.556**	2.982**
Constant	42.288 ***	45.358 ***
Observations	329	329
R-squared	0.513	0.549
Number of companies	94	94
F-statistic	14.53	26.92
Prob > F	0.000	0.000

	Regressing components of board diversity on price-to-book ratio (no moderating effect) (1)	Regressing the board diversity index on price-to-book ratio (with moderating effect) (2)
Gender diversity	0.240	n/a
Racial diversity	−0.511	n/a
Age diversity	0.052	n/a
Occupation diversity	0.022	n/a
After King IV	−0.043	1.885***
Diversity index	n/a	1.540**
Diversity index x After King IV	n/a	−1.854***
Board size	0.033	0.042
Board independence	0.442	0.791
Leverage	3.123***	3.279***
Company size	−2.355***	−2.628***
Sales growth	0.605	0.746*
Institutional ownership	−2.738**	−3.110***
ROA	2.556**	2.982**
Constant	42.288 ***	45.358 ***
Observations	329	329
R-squared	0.513	0.549
Number of companies	94	94
F-statistic	14.53	26.92
Prob > F	0.000	0.000

Note(s): ***p < 0.01, **p < 0.05, *p < 0.1

Source(s): Created by authors

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