Table 5 Chair–CEO age dissimilarity and...

Table 5

Chair–CEO age dissimilarity and annual report tone

	(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)	(9)
Variables	TONE	TONE	TONE	TONE_P	TONE_P	TONE_P	TONE_S	TONE_S	TONE_S
GAPS	−0.002***		−0.002**	−0.002***		−0.002**	−0.003***		−0.003**
GAPS	(−3.757)		(−2.239)	(−3.791)		(−2.369)	(−3.780)		(−2.349)
GAPU		−0.002***			−0.002***			−0.002***
GAPU		(−2.906)			(−2.806)			(−2.829)
GAPSQU			−0.000			−0.000			−0.000
GAPSQU			(−0.357)			(−0.216)			(−0.241)
CHANGE1	−0.005	−0.003	−0.005	−0.005	−0.004	−0.005	−0.006	−0.003	−0.006
CHANGE1	(−0.368)	(−0.242)	(−0.356)	(−0.414)	(−0.289)	(−0.407)	(−0.315)	(−0.189)	(−0.307)
CHANGE2	0.008	0.009	0.008	0.008	0.009	0.008	0.013	0.014	0.013
CHANGE2	(0.720)	(0.787)	(0.720)	(0.756)	(0.822)	(0.755)	(0.848)	(0.915)	(0.848)
TENURE1	0.009***	0.009***	0.009***	0.009***	0.009***	0.009***	0.013***	0.012***	0.013***
TENURE1	(6.472)	(6.122)	(6.474)	(6.425)	(6.051)	(6.426)	(6.421)	(6.056)	(6.423)
TENURE2	−0.005***	−0.005***	−0.005***	−0.005***	−0.005***	−0.005***	−0.007***	−0.006***	−0.007***
TENURE2	(−3.314)	(−3.079)	(−3.315)	(−3.123)	(−2.865)	(−3.123)	(−3.054)	(−2.803)	(−3.054)
BODSIZE	−0.007*	−0.007**	−0.007*	−0.006*	−0.006*	−0.006*	−0.008*	−0.008*	−0.008*
BODSIZE	(−1.946)	(−1.969)	(−1.952)	(−1.829)	(−1.854)	(−1.832)	(−1.745)	(−1.769)	(−1.749)
LEVER	0.128**	0.130**	0.128**	0.126**	0.129**	0.126**	0.173**	0.176**	0.173**
LEVER	(2.112)	(2.150)	(2.115)	(2.085)	(2.123)	(2.087)	(2.010)	(2.048)	(2.012)
FIRMAGE	−0.074***	−0.072***	−0.074***	−0.073***	−0.071***	−0.073***	−0.103***	−0.101***	−0.103***
FIRMAGE	(−11.046)	(−10.807)	(−11.039)	(−10.899)	(−10.663)	(−10.895)	(−10.744)	(−10.508)	(−10.739)
FSIZE	−0.007	−0.008	−0.007	−0.007	−0.008	−0.007	−0.011	−0.011	−0.011
FSIZE	(−1.262)	(−1.348)	(−1.272)	(−1.223)	(−1.310)	(−1.229)	(−1.278)	(−1.365)	(−1.284)
STDRET	−0.234***	−0.233***	−0.234***	−0.213***	−0.212***	−0.213***	−0.327***	−0.326***	−0.328***
STDRET	(−2.992)	(−2.982)	(−2.994)	(−2.732)	(−2.720)	(−2.733)	(−2.957)	(−2.945)	(−2.958)
SALEGR	0.039***	0.039***	0.039***	0.042***	0.042***	0.042***	0.057***	0.057***	0.057***
SALEGR	(3.920)	(3.909)	(3.914)	(4.212)	(4.204)	(4.208)	(4.098)	(4.088)	(4.094)
INDDIR%	−0.129	−0.132	−0.129	−0.125	−0.128	−0.126	−0.149	−0.154	−0.150
INDDIR%	(−1.354)	(−1.392)	(−1.363)	(−1.324)	(−1.355)	(−1.329)	(−1.100)	(−1.133)	(−1.106)
ROA	0.329***	0.325***	0.328***	0.346***	0.341***	0.345***	0.496***	0.490***	0.495***
ROA	(3.406)	(3.360)	(3.401)	(3.589)	(3.543)	(3.587)	(3.628)	(3.582)	(3.625)
LOSS	−0.071***	−0.071***	−0.071***	−0.072***	−0.072***	−0.072***	−0.103***	−0.104***	−0.103***
LOSS	(−4.108)	(−4.131)	(−4.108)	(−4.189)	(−4.213)	(−4.189)	(−4.198)	(−4.222)	(−4.198)
O-Score	−0.009	−0.009	−0.009	−0.009	−0.009	−0.009	−0.012	−0.012	−0.012
O-Score	(−1.328)	(−1.356)	(−1.334)	(−1.314)	(−1.341)	(−1.318)	(−1.226)	(−1.253)	(−1.230)
SALARY	0.025***	0.025***	0.025***	0.024***	0.024***	0.024***	0.036***	0.036***	0.036***
SALARY	(3.692)	(3.693)	(3.684)	(3.445)	(3.450)	(3.439)	(3.653)	(3.657)	(3.647)
Constant	2.577***	2.587***	2.580***	−0.224*	−0.215*	−0.223*	−0.344*	−0.331*	−0.342*
Constant	(21.177)	(21.249)	(21.171)	(−1.847)	(−1.767)	(−1.833)	(−1.959)	(−1.879)	(−1.944)
INDUSTRY	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
YEAR	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Observations	26,876	26,876	26,876	26,876	26,876	26,876	26,876	26,876	26,876
Adjusted-R²	0.0966	0.0964	0.0965	0.0231	0.0228	0.0230	0.0235	0.0232	0.0234

	(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)	(9)
Variables	TONE	TONE	TONE	TONE_P	TONE_P	TONE_P	TONE_S	TONE_S	TONE_S
GAPS	−0.002***		−0.002**	−0.002***		−0.002**	−0.003***		−0.003**
GAPS	(−3.757)		(−2.239)	(−3.791)		(−2.369)	(−3.780)		(−2.349)
GAPU		−0.002***			−0.002***			−0.002***
GAPU		(−2.906)			(−2.806)			(−2.829)
GAPSQU			−0.000			−0.000			−0.000
GAPSQU			(−0.357)			(−0.216)			(−0.241)
CHANGE1	−0.005	−0.003	−0.005	−0.005	−0.004	−0.005	−0.006	−0.003	−0.006
CHANGE1	(−0.368)	(−0.242)	(−0.356)	(−0.414)	(−0.289)	(−0.407)	(−0.315)	(−0.189)	(−0.307)
CHANGE2	0.008	0.009	0.008	0.008	0.009	0.008	0.013	0.014	0.013
CHANGE2	(0.720)	(0.787)	(0.720)	(0.756)	(0.822)	(0.755)	(0.848)	(0.915)	(0.848)
TENURE1	0.009***	0.009***	0.009***	0.009***	0.009***	0.009***	0.013***	0.012***	0.013***
TENURE1	(6.472)	(6.122)	(6.474)	(6.425)	(6.051)	(6.426)	(6.421)	(6.056)	(6.423)
TENURE2	−0.005***	−0.005***	−0.005***	−0.005***	−0.005***	−0.005***	−0.007***	−0.006***	−0.007***
TENURE2	(−3.314)	(−3.079)	(−3.315)	(−3.123)	(−2.865)	(−3.123)	(−3.054)	(−2.803)	(−3.054)
BODSIZE	−0.007*	−0.007**	−0.007*	−0.006*	−0.006*	−0.006*	−0.008*	−0.008*	−0.008*
BODSIZE	(−1.946)	(−1.969)	(−1.952)	(−1.829)	(−1.854)	(−1.832)	(−1.745)	(−1.769)	(−1.749)
LEVER	0.128**	0.130**	0.128**	0.126**	0.129**	0.126**	0.173**	0.176**	0.173**
LEVER	(2.112)	(2.150)	(2.115)	(2.085)	(2.123)	(2.087)	(2.010)	(2.048)	(2.012)
FIRMAGE	−0.074***	−0.072***	−0.074***	−0.073***	−0.071***	−0.073***	−0.103***	−0.101***	−0.103***
FIRMAGE	(−11.046)	(−10.807)	(−11.039)	(−10.899)	(−10.663)	(−10.895)	(−10.744)	(−10.508)	(−10.739)
FSIZE	−0.007	−0.008	−0.007	−0.007	−0.008	−0.007	−0.011	−0.011	−0.011
FSIZE	(−1.262)	(−1.348)	(−1.272)	(−1.223)	(−1.310)	(−1.229)	(−1.278)	(−1.365)	(−1.284)
STDRET	−0.234***	−0.233***	−0.234***	−0.213***	−0.212***	−0.213***	−0.327***	−0.326***	−0.328***
STDRET	(−2.992)	(−2.982)	(−2.994)	(−2.732)	(−2.720)	(−2.733)	(−2.957)	(−2.945)	(−2.958)
SALEGR	0.039***	0.039***	0.039***	0.042***	0.042***	0.042***	0.057***	0.057***	0.057***
SALEGR	(3.920)	(3.909)	(3.914)	(4.212)	(4.204)	(4.208)	(4.098)	(4.088)	(4.094)
INDDIR%	−0.129	−0.132	−0.129	−0.125	−0.128	−0.126	−0.149	−0.154	−0.150
INDDIR%	(−1.354)	(−1.392)	(−1.363)	(−1.324)	(−1.355)	(−1.329)	(−1.100)	(−1.133)	(−1.106)
ROA	0.329***	0.325***	0.328***	0.346***	0.341***	0.345***	0.496***	0.490***	0.495***
ROA	(3.406)	(3.360)	(3.401)	(3.589)	(3.543)	(3.587)	(3.628)	(3.582)	(3.625)
LOSS	−0.071***	−0.071***	−0.071***	−0.072***	−0.072***	−0.072***	−0.103***	−0.104***	−0.103***
LOSS	(−4.108)	(−4.131)	(−4.108)	(−4.189)	(−4.213)	(−4.189)	(−4.198)	(−4.222)	(−4.198)
O-Score	−0.009	−0.009	−0.009	−0.009	−0.009	−0.009	−0.012	−0.012	−0.012
O-Score	(−1.328)	(−1.356)	(−1.334)	(−1.314)	(−1.341)	(−1.318)	(−1.226)	(−1.253)	(−1.230)
SALARY	0.025***	0.025***	0.025***	0.024***	0.024***	0.024***	0.036***	0.036***	0.036***
SALARY	(3.692)	(3.693)	(3.684)	(3.445)	(3.450)	(3.439)	(3.653)	(3.657)	(3.647)
Constant	2.577***	2.587***	2.580***	−0.224*	−0.215*	−0.223*	−0.344*	−0.331*	−0.342*
Constant	(21.177)	(21.249)	(21.171)	(−1.847)	(−1.767)	(−1.833)	(−1.959)	(−1.879)	(−1.944)
INDUSTRY	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
YEAR	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Observations	26,876	26,876	26,876	26,876	26,876	26,876	26,876	26,876	26,876
Adjusted-R²	0.0966	0.0964	0.0965	0.0231	0.0228	0.0230	0.0235	0.0232	0.0234

Note(s): Table 5 columns 1 to 12 report the results from the OLS regression of association between Chair–CEO Age Dissimilarity (GAPS, GAPU & GAPSQU) and Annual Report Tone (TONE, TONE_P & TONE_S). t-statistics in parentheses. *p < 0.10, **p < 0.05, ***p < 0.01. Robust t-statistics (in parentheses) are based on standard errors clustered by firm and year. All the variables are defined in Appendix A

Source(s): Authors' calculations

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