| Variable | Symbol | Description |
|---|---|---|
| Panel A: Internal governance | ||
| Board size | B_Size | Natural log of total no. of directors on board |
| Board independence | B_Ind | No. of independent and non-executive directors on board scaled by total no. of directors |
| CEO duality | CEO_D | If chairman and chief executive officer is same person then 1, otherwise 0 |
| Board diversity | B_Div | If there is a presence of female directors on board then 1, otherwise 0 |
| Board activity | B_Act | No. of meetings attended by the board in a year |
| Audit committee size | AC_Size | No. of audit committee members scaled by total No of directors |
| Audit committee independence | AC_Ind | Total independent and non-executive director scaled by total no. of audit committee members |
| Audit committee chairman independence | AC_ChInd | If chairman of audit committee is an independent/non-executive director then it is 1, otherwise 0 |
| Audit committee activity | AC_Act | No. of audit committee meetings |
| Audit quality | AQ_Ext | If the company is audited by Big 4 then it is 1, otherwise 0 |
| Panel B: External governance | ||
| Insider ownership | Insid_OS | No. of shares held by insiders (executives, directors and CEO) scaled by total outstanding shares |
| Foreign ownership | For_OS | No. of shares held by foreigners (individuals and corporations) scaled by total outstanding shares |
| Associated ownership | Ass_OS | No. of shares held by associated companies scaled by total outstanding shares |
| Family ownership dummy | Fam_OS | Measure of family dominance is a dummy variable that equals 1 if family members’ shareholding is greater than sample median and zero otherwise |
| Institutional ownership | Inst_OS | Measure of financial institution dominance is a dummy variable that equals 1 if financial institution shareholding is greater than sample median. and 0 otherwise |
| Panel 3: Control variables | ||
| Firm size | Size | Ln (total assets) as of year end |
| Profitability | ROE | Return on equity; earnings after interest and taxes/shareholder's equity |
| Growth opportunities | Tob_Q | Tobin's Q; market capitalization plus total debt/total assets at the year end |
| Systematic risk | Beta | Empirically estimated via market model regression using daily return observations |
| Leverage | LEV | Long-term debt/total assets |
| Variable | Symbol | Description |
|---|---|---|
| Board size | B_Size | Natural log of total no. of directors on board |
| Board independence | B_Ind | No. of independent and non-executive directors on board scaled by total no. of directors |
| CEO duality | CEO_D | If chairman and chief executive officer is same person then 1, otherwise 0 |
| Board diversity | B_Div | If there is a presence of female directors on board then 1, otherwise 0 |
| Board activity | B_Act | No. of meetings attended by the board in a year |
| Audit committee size | AC_Size | No. of audit committee members scaled by total No of directors |
| Audit committee independence | AC_Ind | Total independent and non-executive director scaled by total no. of audit committee members |
| Audit committee chairman independence | AC_ChInd | If chairman of audit committee is an independent/non-executive director then it is 1, otherwise 0 |
| Audit committee activity | AC_Act | No. of audit committee meetings |
| Audit quality | AQ_Ext | If the company is audited by Big 4 then it is 1, otherwise 0 |
| Insider ownership | Insid_OS | No. of shares held by insiders (executives, directors and CEO) scaled by total outstanding shares |
| Foreign ownership | For_OS | No. of shares held by foreigners (individuals and corporations) scaled by total outstanding shares |
| Associated ownership | Ass_OS | No. of shares held by associated companies scaled by total outstanding shares |
| Family ownership dummy | Fam_OS | Measure of family dominance is a dummy variable that equals 1 if family members’ shareholding is greater than sample median and zero otherwise |
| Institutional ownership | Inst_OS | Measure of financial institution dominance is a dummy variable that equals 1 if financial institution shareholding is greater than sample median. and 0 otherwise |
| Firm size | Size | Ln (total assets) as of year end |
| Profitability | ROE | Return on equity; earnings after interest and taxes/shareholder's equity |
| Growth opportunities | Tob_Q | Tobin's |
| Systematic risk | Beta | Empirically estimated via market model regression using daily return observations |
| Leverage | LEV | Long-term debt/total assets |
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