Table 4 Regression of family firm...

Table 4

Regression of family firm efficiency on CEO characteristics

Variable	(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)	(9)	(10)	(11)	(12)
Intercept	0.4480^***	0.5000^***	0.4590^***	0.5785^***	0.4973^***	0.6308^***	0.4897^***	0.6749^***	0.4865^***	0.8790^***	0.3801^***	0.6890^***
Intercept	(31.64)	(21.80)	(29.84)	(27.63)	(22.20)	(14.08)	(18.87)	(16.25)	(13.84)	(9.91)	(11.60)	(9.00)
AGE	0.0003^**	0.0007^***	0.0001	0.0003^**	0.0005^**	0.0007^**	0.0004	−0.0002	0.0004	−0.0001	0.0000	−0.0002
AGE	(2.34)	(5.22)	(0.93)	(2.45)	(2.05)	(1.97)	(1.58)	(−0.48)	(1.01)	(−0.23)	(0.10)	(−0.35)
FEMALE	0.0022	−0.0053	0.0004	−0.0159^**	−0.0265^**	−0.1320^***	−0.0231^*	−0.1151^***	−0.0051	−0.3498^***	0.0007	−0.2612^***
FEMALE	(0.30)	(−0.72)	(0.06)	(−2.55)	(−2.10)	(−3.84)	(−1.96)	(−3.92)	(−0.27)	(−4.90)	(0.04)	(−4.36)
LNCOMP	0.0245^***	0.0146^***	0.0243^***	0.0092^***	0.0138^***	0.0110^***	0.0145^***	0.0079^***	0.0226^***	0.0113^***	0.0254^***	0.0123^***
LNCOMP	(22.73)	(12.78)	(22.65)	(8.28)	(9.12)	(6.87)	(10.00)	(5.36)	(8.93)	(3.59)	(10.85)	(4.19)
SHROWN_PCT	0.0001	−0.0004^***	0.0002	0.0000	−0.0003	−0.0009^***	−0.0002	−0.0004^*	0.0003	−0.0007	0.0006^*	−0.0003
SHROWN_PCT	(0.67)	(−2.84)	(1.51)	(0.05)	(−1.27)	(−3.45)	(−1.14)	(−1.67)	(0.87)	(−1.25)	(1.91)	(−0.66)
FMT_D	−0.0307^***	−0.0131^***	−0.0280^***	−0.0033	−0.0473^***	−0.0245^***	−0.0450^***	−0.0097^*	−0.0202^***	−0.0028	−0.0170^***	0.0034
FMT_D	(−9.84)	(−3.71)	(−9.58)	(−1.08)	(−10.19)	(−4.36)	(−10.43)	(−1.96)	(−3.13)	(−0.33)	(−2.92)	(0.46)
EXECDIR	0.0238^***	0.0125^*	0.0191^***	0.0079	0.0505^***	0.0341^**	0.0492^***	0.0400^***	−0.0045	0.0164	−0.0086	0.0233
EXECDIR	(3.10)	(1.75)	(2.64)	(1.30)	(3.59)	(2.20)	(3.74)	(3.03)	(−0.18)	(0.75)	(−0.38)	(1.27)
JOIN_YRS					0.0006^***	0.0002	0.0004^**	0.0003	0.0005^*	0.0004	0.0003	0.0005
JOIN_YRS					(3.01)	(0.55)	(2.37)	(1.22)	(1.83)	(0.98)	(1.31)	(1.42)
OUTSIDE					−0.0228^***	−0.0141^*	−0.0213^***	−0.0058	−0.0315^***	0.0054	−0.0290^***	−0.0061
OUTSIDE					(−4.75)	(−1.89)	(−4.73)	(−0.85)	(−4.68)	(0.47)	(−4.75)	(−0.63)
E_IDX									0.0004	0.0011	0.0016	0.0022
E_IDX									(0.23)	(0.29)	(0.94)	(0.66)
Time FE	No	No	Yes	Yes	No	No	Yes	Yes	No	No	Yes	Yes
Firm FE	No	Yes	No	Yes	No	Yes	No	Yes	No	Yes	No	Yes
R-square	0.1235	0.5870	0.2408	0.7035	0.1222	0.5741	0.2521	0.697	0.1048	0.5610	0.2813	0.6991
Obs	5,339	5,339	5,339	5,339	2,426	2,426	2,426	2,426	1,300	1,300	1,300	1,300
DF	5,332	5,024	5,306	4,998	2,417	2,223	2,391	2,197	1,290	1,136	1,274	1,120

Variable	(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)	(9)	(10)	(11)	(12)
Intercept	0.4480^***	0.5000^***	0.4590^***	0.5785^***	0.4973^***	0.6308^***	0.4897^***	0.6749^***	0.4865^***	0.8790^***	0.3801^***	0.6890^***
Intercept	(31.64)	(21.80)	(29.84)	(27.63)	(22.20)	(14.08)	(18.87)	(16.25)	(13.84)	(9.91)	(11.60)	(9.00)
AGE	0.0003^**	0.0007^***	0.0001	0.0003^**	0.0005^**	0.0007^**	0.0004	−0.0002	0.0004	−0.0001	0.0000	−0.0002
AGE	(2.34)	(5.22)	(0.93)	(2.45)	(2.05)	(1.97)	(1.58)	(−0.48)	(1.01)	(−0.23)	(0.10)	(−0.35)
FEMALE	0.0022	−0.0053	0.0004	−0.0159^**	−0.0265^**	−0.1320^***	−0.0231^*	−0.1151^***	−0.0051	−0.3498^***	0.0007	−0.2612^***
FEMALE	(0.30)	(−0.72)	(0.06)	(−2.55)	(−2.10)	(−3.84)	(−1.96)	(−3.92)	(−0.27)	(−4.90)	(0.04)	(−4.36)
LNCOMP	0.0245^***	0.0146^***	0.0243^***	0.0092^***	0.0138^***	0.0110^***	0.0145^***	0.0079^***	0.0226^***	0.0113^***	0.0254^***	0.0123^***
LNCOMP	(22.73)	(12.78)	(22.65)	(8.28)	(9.12)	(6.87)	(10.00)	(5.36)	(8.93)	(3.59)	(10.85)	(4.19)
SHROWN_PCT	0.0001	−0.0004^***	0.0002	0.0000	−0.0003	−0.0009^***	−0.0002	−0.0004^*	0.0003	−0.0007	0.0006^*	−0.0003
SHROWN_PCT	(0.67)	(−2.84)	(1.51)	(0.05)	(−1.27)	(−3.45)	(−1.14)	(−1.67)	(0.87)	(−1.25)	(1.91)	(−0.66)
FMT_D	−0.0307^***	−0.0131^***	−0.0280^***	−0.0033	−0.0473^***	−0.0245^***	−0.0450^***	−0.0097^*	−0.0202^***	−0.0028	−0.0170^***	0.0034
FMT_D	(−9.84)	(−3.71)	(−9.58)	(−1.08)	(−10.19)	(−4.36)	(−10.43)	(−1.96)	(−3.13)	(−0.33)	(−2.92)	(0.46)
EXECDIR	0.0238^***	0.0125^*	0.0191^***	0.0079	0.0505^***	0.0341^**	0.0492^***	0.0400^***	−0.0045	0.0164	−0.0086	0.0233
EXECDIR	(3.10)	(1.75)	(2.64)	(1.30)	(3.59)	(2.20)	(3.74)	(3.03)	(−0.18)	(0.75)	(−0.38)	(1.27)
JOIN_YRS					0.0006^***	0.0002	0.0004^**	0.0003	0.0005^*	0.0004	0.0003	0.0005
JOIN_YRS					(3.01)	(0.55)	(2.37)	(1.22)	(1.83)	(0.98)	(1.31)	(1.42)
OUTSIDE					−0.0228^***	−0.0141^*	−0.0213^***	−0.0058	−0.0315^***	0.0054	−0.0290^***	−0.0061
OUTSIDE					(−4.75)	(−1.89)	(−4.73)	(−0.85)	(−4.68)	(0.47)	(−4.75)	(−0.63)
E_IDX									0.0004	0.0011	0.0016	0.0022
E_IDX									(0.23)	(0.29)	(0.94)	(0.66)
Time FE	No	No	Yes	Yes	No	No	Yes	Yes	No	No	Yes	Yes
Firm FE	No	Yes	No	Yes	No	Yes	No	Yes	No	Yes	No	Yes
R-square	0.1235	0.5870	0.2408	0.7035	0.1222	0.5741	0.2521	0.697	0.1048	0.5610	0.2813	0.6991
Obs	5,339	5,339	5,339	5,339	2,426	2,426	2,426	2,426	1,300	1,300	1,300	1,300
DF	5,332	5,024	5,306	4,998	2,417	2,223	2,391	2,197	1,290	1,136	1,274	1,120

Note(s): The Table presents estimates from a regression of family firm efficiency on various controls. AGE is the CEO's age in the sample year. FEMALE is a dummy variable that equals 1 if the CEO is female and 0 otherwise. LNCOMP is the logarithm of the CEO's total compensation. SHROWN_PCT is the proportion of the CEO's compensation in stocks. FMT_D is a dummy variable that equals 1 if the firm is run by a family management team and 0 otherwise. EXECDIR is a dummy variable that equals 1 when the CEO also sits on the board, 0 otherwise. JOIN_YRS shows the number of years since the CEO joined the company. OUTSIDE is a dummy variable that equals 1 if the CEO was recruited from outside of the company, 0 otherwise. E_IDX is the governance related Entrenchment index of Bebchuk et al. (2009). t-values are in parentheses, and ***, **, * indicate p-values less than 0.01, 0.05, and 0.10, respectively. DF denotes degrees of freedom. Models (1)–(4) have the largest sample. Models (5)–(8) have fewer observations because the date that the CEO joined the company was missing in some observations. Models (9)–(12) have a smaller sample because the E_IDX is only available up to 2006, and there is a smaller intersection between E_IDX and other variables

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