Table 3 The effects of a connected CEO...

Table 3

The effects of a connected CEO in the first 36 months, by geography

Variables	Pooled	United States and Commonwealth^a	Europe^b	Asia^c	Rest of the world^d
Market-based effects
CARs
Connected CEO	0.80 (0.00)	0.87 (0.00)	0.67 (0.05)	1.00 (0.10)	0.20 (0.66)
Non-connected CEO	0.89 (0.00)	1.06 (0.00)	0.38 (0.30)	0.61 (0.36)	0.13 (0.74)
Observations	48,710	37,198	4,938	1,979	4,595
Within R²	0.0019	0.0026	0.0097	0.0044	0.0085
Between R²	0.1131	0.1141	0.0788	0.5369	0.0682
Overall R²	0.0067	0.0068	0.0184	0.0256	0.0120
Accounting-based effects
ROA
Connected CEO	−0.94 (0.00)	−1.24 (0.00)	0.30 (0.05)	−1.28 (0.00)	0.77 (0.00)
Non-connected CEO	−0.30 (0.00)	−0.04 (0.02)	−0.72 (0.00)	1.43 (0.01)	−0.14 (0.48)
Observations	48,710	37,198	4,938	1,979	4,595
Within R²	0.0156	0.0171	0.1096	0.1277	0.0421
Between R²	0.2358	0.2351	0.2046	0.3163	0.3579
Overall R²	0.1651	0.1641	0.2217	0.2300	0.3117
ROIC
Connected CEO	−1.01 (0.00)	−1.51 (0.00)	0.70 (0.00)	−1.29 (0.01)	0.01 (0.97)
Non-connected CEO	−0.60 (0.00)	−0.56 (0.00)	−1.12 (0.00)	−4.18 (0.00)	−0.07 (0.76)
Observations	48,710	37,198	4,938	1,979	4,595
Within R²	0.0111	0.0118	0.0937	0.0732	0.0571
Between R²	0.2518	0.2458	0.0754	0.3709	0.2625
Overall R²	0.1755	0.1704	0.1184	0.2322	0.2553
ROS
Connected CEO	−5.25 (0.00)	−6.68 (0.00)	−0.29 (0.42)	4.01 (0.20)	−1.68 (0.09)
Non-connected CEO	−3.88 (0.00)	−3.21 (0.00)	−2.25 (0.00)	−47.5 (0.00)	−1.81 (0.02)
Observations	48,710	37,198	4,938	1,979	4,595
Within R²	0.0053	0.0071	0.1168	0.1777	0.0217
Between R²	0.2198	0.2350	0.2798	0.4937	0.0889
Overall R²	0.1698	0.1814	0.2285	0.3909	0.0587

Variables	Pooled	United States and Commonwealth^a	Europe^b	Asia^c	Rest of the world^d
Market-based effects
CARs
Connected CEO	0.80 (0.00)	0.87 (0.00)	0.67 (0.05)	1.00 (0.10)	0.20 (0.66)
Non-connected CEO	0.89 (0.00)	1.06 (0.00)	0.38 (0.30)	0.61 (0.36)	0.13 (0.74)
Observations	48,710	37,198	4,938	1,979	4,595
Within R²	0.0019	0.0026	0.0097	0.0044	0.0085
Between R²	0.1131	0.1141	0.0788	0.5369	0.0682
Overall R²	0.0067	0.0068	0.0184	0.0256	0.0120
Accounting-based effects
ROA
Connected CEO	−0.94 (0.00)	−1.24 (0.00)	0.30 (0.05)	−1.28 (0.00)	0.77 (0.00)
Non-connected CEO	−0.30 (0.00)	−0.04 (0.02)	−0.72 (0.00)	1.43 (0.01)	−0.14 (0.48)
Observations	48,710	37,198	4,938	1,979	4,595
Within R²	0.0156	0.0171	0.1096	0.1277	0.0421
Between R²	0.2358	0.2351	0.2046	0.3163	0.3579
Overall R²	0.1651	0.1641	0.2217	0.2300	0.3117
ROIC
Connected CEO	−1.01 (0.00)	−1.51 (0.00)	0.70 (0.00)	−1.29 (0.01)	0.01 (0.97)
Non-connected CEO	−0.60 (0.00)	−0.56 (0.00)	−1.12 (0.00)	−4.18 (0.00)	−0.07 (0.76)
Observations	48,710	37,198	4,938	1,979	4,595
Within R²	0.0111	0.0118	0.0937	0.0732	0.0571
Between R²	0.2518	0.2458	0.0754	0.3709	0.2625
Overall R²	0.1755	0.1704	0.1184	0.2322	0.2553
ROS
Connected CEO	−5.25 (0.00)	−6.68 (0.00)	−0.29 (0.42)	4.01 (0.20)	−1.68 (0.09)
Non-connected CEO	−3.88 (0.00)	−3.21 (0.00)	−2.25 (0.00)	−47.5 (0.00)	−1.81 (0.02)
Observations	48,710	37,198	4,938	1,979	4,595
Within R²	0.0053	0.0071	0.1168	0.1777	0.0217
Between R²	0.2198	0.2350	0.2798	0.4937	0.0889
Overall R²	0.1698	0.1814	0.2285	0.3909	0.0587

Note(s): All regressions apply the panel random effects estimator to data winsorized at the 2nd and 98th percentile of the relevant indicator (dependent variable). The explanatory variable (non)connected CEO measures the performance of a new (non)connected CEO in the 12 months after appointment relative to the 12 months before being appointed. Control variables include measures of company health, company size, time, country and industry fixed effects, and a constant term. The p-value of the point estimate is reported in brackets – the significance levels utilize two-tailed tests except the constant

Australia, Canada, United Kingdom and United States

Belgium, Czech Republic, Denmark, Finland, France, Germany, Italy, Norway, Portugal, Spain, Sweden and Switzerland

Hong Kong and Japan

Brazil, India and South Africa

Source(s): Authors’ own work

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