Table 7.

The effect of ex-military CEOs on income smoothing: instrumental variable analysis using birth-cohort instruments

VariablesMILITARY_CEOSMTHt,t + 4
MILITARY_CEO (instrumented)0.445** (2.363)
birth_year_ceo−0.056*** (−22.703)
conflict_cohort0.168*** (3.368)
Observations33,78733,787
Adjusted R-squared0.4130.451
Firm controlsYESYES
CEO controlsYESYES
Firm and year FEsYESYES
Hansen p-value0.481
Cragg–Donald Wald F-statistic382.471
Kleibergen–Paap Wald F-statistic61.280
Note(s):

This table reports first-stage (Column 1) and second-stage (Column 2) 2SLS results. Instruments: birth_year_ceo (CEO birth year) and conflict_cohort (indicator for CEO born between 1930 and 1943). First stage predicts MILITARY_CEO; second stage regresses SMTH on instrumented MILITARY_CEO. Standard errors are clustered at the firm level. The z-statistics are reported in parentheses below. ***, ** and * denote two-tailed significance at the 0.01, 0.05 and 0.10 levels, respectively. All variables are defined in  Appendix 1

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