Table I

Definitions of variables

VariableDescriptionTypeMeasuring technique
COECost of EquityDVCAPM
BOWNBlock ownershipIVThe proportion of stocks owned by the top 5 shareholders
IOWNInsider ownershipIVThe proportion of stocks owned by the insider
NEDNon-Executive DirectorsIVThe proportion of non-executive directors on the board
INEDIndependent non-executive directorIVThe proportion of independent non-executive directors on the board
BDSBoard sizeIVTotal number of board’s members
FMDFemale directorIVThe proportion of female directors on the board
DUALITYDualityIVCEO and chairman of the board is one person
TENURECEO TenureIVTotal number of years that the CEO works in his/her position
LEVLeverageControl variableLeverage=(Long-term liabilities) + (short-term liabilities) / total asset
LN(S)Firm sizeControl variableProxy for size, which is the natural log of total assets

Notes: COE, cost of equity; BOWNS, block ownership; IOWNS, inside ownership; NED, non-executive directors; INED, independent non-executive directors; BDS, board size; FMD, female directors; DUA, CEO duality; CEO TEN, CEO tenure, LEV, Leverage; LNTA, LOG of total assets

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