Further analysis
| Dependent variables | CashFlow | Agency |
|---|---|---|
| (1) | (2) | |
| Hierarchy * Status | −0.2764*** | 0.0062** |
| (0.0824) | (0.0029) | |
| Size | −0.2896 | −0.0338*** |
| (0.2086) | (0.0067) | |
| Lev | 10.3510*** | 0.2962*** |
| (0.7759) | (0.0236) | |
| Grossprofit | −7.0174*** | 0.1538*** |
| (0.7538) | (0.0277) | |
| Tobinq | 0.1712** | 0.0312*** |
| (0.0712) | (0.0036) | |
| Top1 | −3.9247*** | 0.1118*** |
| (0.9693) | (0.0397) | |
| FirmAge | 3.4920*** | 0.0002 |
| (0.7643) | (0.0355) | |
| Female | 2.0936*** | −0.0195 |
| (0.7609) | (0.0339) | |
| Tenure_CEO | 0.0366 | 0.0178*** |
| (0.0667) | (0.0024) | |
| Dual | −0.2604 | 0.0083 |
| (0.2978) | (0.0074) | |
| Indep_per | −1.7260 | −0.1139** |
| (1.5322) | (0.0487) | |
| Indep_age | 2.7713** | 0.0725** |
| (1.0802) | (0.0290) | |
| Constant | −9.0946 | 0.1791 |
| (7.5115) | (0.2070) | |
| Firm FE | YES | YES |
| Year FE | YES | YES |
| R2 | 0.4842 | 0.6842 |
| Observations | 40,370 | 35,967 |
| Dependent variables | ||
|---|---|---|
| (1) | (2) | |
| −0.2764*** | 0.0062** | |
| (0.0824) | (0.0029) | |
| −0.2896 | −0.0338*** | |
| (0.2086) | (0.0067) | |
| 10.3510*** | 0.2962*** | |
| (0.7759) | (0.0236) | |
| −7.0174*** | 0.1538*** | |
| (0.7538) | (0.0277) | |
| 0.1712** | 0.0312*** | |
| (0.0712) | (0.0036) | |
| −3.9247*** | 0.1118*** | |
| (0.9693) | (0.0397) | |
| 3.4920*** | 0.0002 | |
| (0.7643) | (0.0355) | |
| 2.0936*** | −0.0195 | |
| (0.7609) | (0.0339) | |
| 0.0366 | 0.0178*** | |
| (0.0667) | (0.0024) | |
| −0.2604 | 0.0083 | |
| (0.2978) | (0.0074) | |
| −1.7260 | −0.1139** | |
| (1.5322) | (0.0487) | |
| 2.7713** | 0.0725** | |
| (1.0802) | (0.0290) | |
| −9.0946 | 0.1791 | |
| (7.5115) | (0.2070) | |
| Firm FE | YES | YES |
| Year FE | YES | YES |
| 0.4842 | 0.6842 | |
| Observations | 40,370 | 35,967 |
Note(s): Table 10 examines how the interaction between hierarchical culture and independent directors' social status affects firm outcomes. Column (1) evaluates the impact of the interaction term on firms' cash-flow performance. Column (2) examines the effect of the interaction term on agency costs. ***, **, and * indicate significance at the 1%, 5%, and 10% levels and standard errors are reported in parentheses
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