The effect of ex-military CEOs on income smoothing: instrumental variable analysis using birth-cohort instruments
| Variables | MILITARY_CEO | SMTHt,t + 4 |
|---|---|---|
| MILITARY_CEO (instrumented) | 0.445** (2.363) | |
| birth_year_ceo | −0.056*** (−22.703) | |
| conflict_cohort | 0.168*** (3.368) | |
| Observations | 33,787 | 33,787 |
| Adjusted R-squared | 0.413 | 0.451 |
| Firm controls | YES | YES |
| CEO controls | YES | YES |
| Firm and year FEs | YES | YES |
| Hansen p-value | 0.481 | |
| Cragg–Donald Wald F-statistic | 382.471 | |
| Kleibergen–Paap Wald F-statistic | 61.280 | |
| Variables | MILITARY_CEO | |
|---|---|---|
| MILITARY_CEO (instrumented) | 0.445 | |
| birth_year_ceo | −0.056 | |
| conflict_cohort | 0.168 | |
| Observations | 33,787 | 33,787 |
| Adjusted | 0.413 | 0.451 |
| Firm controls | ||
| Firm and year FEs | ||
| Hansen | 0.481 | |
| Cragg–Donald Wald | 382.471 | |
| Kleibergen–Paap Wald | 61.280 | |
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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