Searching for a tipping point
| Independent variables | Monitoring tasks | Strategy tasks | Advisory tasks | |||
|---|---|---|---|---|---|---|
| (1) | (2) | (3) | (4) | (5) | (6) | |
| Tipping point (27%) | 7.85* (1.86) | |||||
| Tipping point (28%) | 6.62 (1.43) | |||||
| Tipping point (31%) | 2.96 (1.56) | |||||
| Tipping point (32%) | 3.34* (1.75) | |||||
| Tipping point (40%) | −6.32 (−1.52) | |||||
| Tipping point (41%) | −11.11*** (−14.95) | |||||
| CEO duality | −8.77*** (−2.01) | −9.76*** (−2.35) | −3.69 (−1.62) | −3.61 (−1.59) | −7.10*** (−2.49) | −7.11*** (−2.49) |
| Independent directors% | 0.12 (1.17) | 0.12 (1.18) | 0.08*** (2.39) | 0.08** (2.41) | 0.27*** (3.18) | 0.27*** (3.14) |
| Board size | 0.39 (0.60) | 0.35 (0.55) | −0.20 (−0.81) | −0.22 (−0.89) | −1.35 (−2.70) | −1.35*** (−2.71) |
| Total assets | 4.12 × 108*** (3.14) | 4.03 × 108*** (3.17) | 3.58 × 108* (1.74) | 3.62 × 108* (1.75) | 2.02 × 108* (1.78) | 2.11 × 108* (1.81) |
| R-sq between | 0.36 | 0.36 | 0.33 | 0.33 | 0.39 | 0.39 |
| R-sq within | 0.06 | 0.05 | 0.06 | 0.07 | 0.17 | 0.17 |
| R-sq overall | 0.21 | 0.21 | 0.35 | 0.35 | 0.34 | 0.35 |
| N. Obs | 237 | 237 | 237 | 237 | 238 | 238 |
| N. Firms | 35 | 35 | 35 | 35 | 35 | 35 |
| Independent variables | Monitoring tasks | Strategy tasks | Advisory tasks | |||
|---|---|---|---|---|---|---|
| (1) | (2) | (3) | (4) | (5) | (6) | |
| Tipping point (27%) | ||||||
| Tipping point (28%) | 6.62 (1.43) | |||||
| Tipping point (31%) | 2.96 (1.56) | |||||
| Tipping point (32%) | ||||||
| Tipping point (40%) | −6.32 (−1.52) | |||||
| Tipping point (41%) | ||||||
| CEO duality | −8.77 | −9.76 | −3.69 (−1.62) | −3.61 (−1.59) | −7.10 | −7.11 |
| Independent directors% | 0.12 (1.17) | 0.12 (1.18) | 0.08 | 0.08 | 0.27 | 0.27 |
| Board size | 0.39 (0.60) | 0.35 (0.55) | −0.20 (−0.81) | −0.22 (−0.89) | −1.35 (−2.70) | −1.35 |
| Total assets | 4.12 × 108 | 4.03 × 108 | 3.58 × 108 | 3.62 × 108 | 2.02 × 108 | 2.11 × 108 |
| R-sq between | 0.36 | 0.36 | 0.33 | 0.33 | 0.39 | 0.39 |
| R-sq within | 0.06 | 0.05 | 0.06 | 0.07 | 0.17 | 0.17 |
| R-sq overall | 0.21 | 0.21 | 0.35 | 0.35 | 0.34 | 0.35 |
| N. Obs | 237 | 237 | 237 | 237 | 238 | 238 |
| N. Firms | 35 | 35 | 35 | 35 | 35 | 35 |
Notes:
T-statistics are reported in brackets. *, ** and *** denote significance at 10%, 5% and 1%, respectively. Random effect has been used as the method of estimation. Robust standard errors clustered at the firm-division level. Results are controlled for industry. All tests are two-tailed
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