Table 10

Further analysis

Dependent variablesCashFlowAgency
(1)(2)
Hierarchy * Status−0.2764***0.0062**
(0.0824)(0.0029)
Size−0.2896−0.0338***
(0.2086)(0.0067)
Lev10.3510***0.2962***
(0.7759)(0.0236)
Grossprofit−7.0174***0.1538***
(0.7538)(0.0277)
Tobinq0.1712**0.0312***
(0.0712)(0.0036)
Top1−3.9247***0.1118***
(0.9693)(0.0397)
FirmAge3.4920***0.0002
(0.7643)(0.0355)
Female2.0936***−0.0195
(0.7609)(0.0339)
Tenure_CEO0.03660.0178***
(0.0667)(0.0024)
Dual−0.26040.0083
(0.2978)(0.0074)
Indep_per−1.7260−0.1139**
(1.5322)(0.0487)
Indep_age2.7713**0.0725**
(1.0802)(0.0290)
Constant−9.09460.1791
(7.5115)(0.2070)
Firm FEYESYES
Year FEYESYES
R20.48420.6842
Observations40,37035,967

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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